The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hit neighboring islands causing many injuries The hurricane largely bypassed Saint Lucia, but residents of Saint Lucia willingly donated their blood to help people on other islands As a consequence, the blood bank collected and processed over 20 more blood than had been originally planned for the month A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below Continued support from the government depends on the blood banks ability to demonstrate control over its costs Saint Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Results Planning Budget Variances Liters of blood collected 620 500 Medical supplies $ 9,250 $ 7,500 $ 1,750 U Lab tests 6,180 6,000 180 U Equipment depreciation 2,800 2,500 300 U Rent 1,000 1,000 0 Utilities 570 500 70 U Administration 11,740 11,250 490 U Total expense $ 31,540 $ 28,750 $ 2,790 U The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government he was just pointing out that actual costs were a lot higher than promised in the budget The following cost formulas were used to construct the planning budget Cost Formulas Medical supplies $15 00 q Lab tests $12 00 q Equipment depreciation $2,500 Rent $1,000 Utilities $500 Administration $10,000 $2 50 q Required 1 Complete the flexible budget performance report for September (Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and None for no effect (i e , zero variance) Input all amounts as positive values )

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The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia. The blood bank

The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia. The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hit neighboring islands causing many injuries. The hurricane largely bypassed Saint Lucia, but residents of Saint Lucia willingly donated their blood to help people on other islands. As a consequence, the blood bank collected and processed over 20% more blood than had been originally planned for the month.

A report prepared by a government official comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood banks ability to demonstrate control over its costs.

	Actual Results	Planning Budget	Variances
Saint Lucia Blood Bank Cost Control Report For the Month Ended September 30
Liters of blood collected	620	500
Medical supplies	$ 9,250	$ 7,500	$ 1,750	U
Lab tests	6,180	6,000	180	U
Equipment depreciation	2,800	2,500	300	U
Rent	1,000	1,000	0
Utilities	570	500	70	U
Administration	11,740	11,250	490	U
Total expense	$ 31,540	$ 28,750	$ 2,790	U

The managing director of the blood bank was very unhappy with this report, claiming that his costs were higher than expected due to the emergency on the neighboring islands. He also pointed out that the additional costs had been fully covered by payments from grateful recipients on the other islands. The government official who prepared the report countered that all of the figures had been submitted by the blood bank to the government; he was just pointing out that actual costs were a lot higher than promised in the budget.

The following cost formulas were used to construct the planning budget:

	Cost Formulas
Medical supplies	$15.00q
Lab tests	$12.00q
Equipment depreciation	$2,500
Rent	$1,000
Utilities	$500
Administration	$10,000 + $2.50q

Required:

1.Complete the flexible budget performance report for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)