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 banks ability to demonstrate control over its costs.

St. Lucia Blood Bank Cost Control Report For the Month Ended September 30
	Actual Results		Planning Budget		Variances
Liters of blood collected		560		440
Medical supplies	$	7,788	$	6,380	$	1,408	U
Lab tests		5,025		4,840		185	U
Equipment depreciation		3,430		3,100		330	U
Rent		1,300		1,300		0
Utilities		732		650		82	U
Administration		11,920		11,400		520	U
Total expense	$	30,195	$	27,670	$	2,525	U