The KGV Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. Lucia. A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears on the below picture: KGV Blood Bank Cost Control Report For the Month Ended September 30 Planning Budget Actual Results Variances Liters of blood collected 600 780 $ 9,252 10,782 2,100 1,500 $ 7,110 8,610 $2,142 U 2,172 U Medical supplies. Lab tests .. Equipment depreciation . 1,900 1,500 200 U Rent. Utilities . 300 324 24 U Administration. 14,310 14,575 265 U Total expense $33,730 $38,533 $4,803 U The following cost formulas wereused to construct the planning budget: $11.85q $14.35q $1,900 $1,500 $300 $13,200 + $1.85q Medical supplies. Lab tests. Equipment depreciation Rent Utilities Administration. Required: a) Prepare a flexible budget b) Show your U/F lines of revenue and costs c) Comment if the report prepared by the government was right or wrong, explain