The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of St. 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 St. Lucia, but residents of St. 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 bank's ability to demonstrate control over its costs. St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Planning Results Budget Liters of blood collected 620 500 Variances $ $ 8,500 $ 1,850 U 6,000 235 U 3,600 355 U Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense 10,350 6,235 3,955 1,550 867 12,595 35,552 1,550 775 92 U 12,050 545 U 32,475 $ 3,077 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: Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Cost Formulas $17.009 $12.009 $3,600 $1,550 $775 $10,550 + $3.009 Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Cost Formulas $17.009 $12.009 $3,600 $1,550 $775 $10,550 + $3.000 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.) St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Actual Results 620 Planning Budget 500 Liters of blood collected $ $ 10,350 6,235 3,955 Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense 8,500 6,000 3,600 1,550 1,550 775 867 12,595 35,552 12.050 32,475 $ $
