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. Lueia 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. 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 istands. He also pointed out that the additional costs had been fally covered by payments from zrateful fecipients on the other islands. The government official who prepared the report countered that all of the figures had been submited by the blood bank to the government, be was just pointing out that actual costs were a lot higher than promised in the bodpet. The following cost formulas were used to construct the planning budget: Required: 1. Using Exhihit 9.8 as your guide, prepare a flexible budget performance report for September. 2. Do you think any of the variances in the report you prepared should be investigated? Why? Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 2. Please comment on the activity variances and the spending variances. What can you observe? What could be the reasons for these variances