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
Litres of blood collected		960			600			360	F
Variable costs:
Medical supplies	$	8,900		$	7,500		$	1,400	U
Lab tests		10,280			7,800			2,480	U
Refreshments for donors		2,140			1,350			790	U
Administrative supplies		560			210			350	U
Total variable cost		21,880			16,860			5,020	U
Fixed costs:
Staff salaries		15,500			15,500
Equipment depreciation		4,400			3,300			1,100	U
Rent		1,550			1,550
Utilities		730			580			150	U
Total fixed cost		22,180			20,930			1,250	U
Total cost	$	44,060		$	37,790		$	6,270	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 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)

ST. LUCIA BLOOD BANK
Flexible Budget Performance Report
For The Month Ended September 30
	Cost Formula (Per Litre)	Actual	Spending or Budget Variance		Flexible Budget	Static Budget
		Activity-Level (litres)
		960			960	600
Variable costs:
Medical supplies
Lab tests
Refreshments for donors
Administrative supplies
Total variable cost
Fixed costs:
Staff salaries
Equipment depreciation
Rent
Utilities
Total fixed cost
Total cost