The Osprey Laboratory just finished its operations for September. September was a particularity busy month due to a chemical spill and required an increase in lab testing. As a consequence, the laboratory collected and processed more laboratory samples than planned for the month. The actual costs and the budgeted costs for the month are included below.

Osprey Medical Laboratory Cost Control Report For the Month Ended September 30
	Actual	Static Budget
Laboratory samples collected	920	700
Variable costs:
Medical supplies	$14,878	$10,640
Lab tests	15,389	12,915
Refreshments for staff and volunteers	1,779	1,435
Administrative supplies	284	490
Total variable costs	32,330	25,480
Fixed costs:
Staff salaries	19,800	19,800
Equipment depreciation	2,250	2,250
Rent	3,150	2,850
Utilities	486	450
Total fixed cost	25,686	25,350
Total cost	$58,016	$50,830

Required:

1. Prepare a comprehensive performance report for September. (32 marks)

2. What is the overall Static Budget variance? Explain the variance by evaluating the Flexible Budget Variance and the Sales Volume Variance. (3 marks)