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 bank's 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 750 600 150 F Variable costs: Medical 9,450 $8,100 $ 1,350 U supplies Lab 6,480 6,300 180 U tests Refresh ments for donors 1,550 1,200 350 U Admini strative supplies 420 240 180 U 17,90 15,84 variable cost 2,060 U Fixed costs: Staff salaries 12,00 0 12,00 Equipm ent depreciati on 3,000 2,600 400 U Rent Utilities 1,200 590 1,200 510 80 U Total fixed cost 16,79 0 16,31 0 480 U Total cost 34,69 32,15 $2,540 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 classified as direct costs rather than overhead, the flexible budget report.). (Indicate the effect of each variance by selecting "F" for budget approach. (Note: Even though some of these costs might be approach can still be used to prepare a flexible budget performance favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Cost Formula" answers to 2 decimal places) St. B Lucia flexibl budget performan report Septemb 30 er Flexible Static budget budg For month Ended the Cost Actua Spendi formu I la (per litre ng or budget varianc 750e Activity -level (litres) Variable costs Medical supplies Lab tests Refreshmen ts for donors Administrat ive supplies Total variable cost Fixed cost: Staff salaries Equipment depreciatio Rent Utilities Total fixed cost Total cost