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 particularly busy month due to a powerful hurricane that hit neighbouring islands, causing many injuries. The hurricane largely bypassed St. Lucia, but the residents of St. Lucia willingly donated their blood to help people on other islands. As a consequence, the blood bank collected and processed 24% 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. (The currency on St. Lucia is the East Caribbean dollar.) Continued support from the government depends on the blood banks ability to demonstrate control over its costs.

ST. LUCIA BLOOD BANK Cost Control Report For the Month Ended September 30
	Actual	Budget	Variance
Liters of blood collected	620	500	120F
Variable costs:
Medical supplies	$9,350	$7,500	$1,850U
Lab tests	6,180	6,000	180U
Refreshments for donors	1,340	1,000	340U
Administrative supplies	400	250	150U
Total variable cost	17,270	14,750	2,520U
Fixed costs:
Staff salaries	10,000	10,000
Equipment depreciation	2,800	2,500	300U
Rent	1,000	1,000
Utilities	570	500	70U
Total fixed cost	14,370	14,000	370U
Total cost	$31,640	$28,750	$2,890U

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 neighbouring 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.

Required:

1. Prepare a new performance report for September using the flexible budget approach. (Note: Even though some of these costs might be classified as direct costs rather than overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.). (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places)

Please provide detailed calculation.

ST. LUCIA BLOOD BANK Flexible Budget Performance Report For The Month Ended September 30