Question

The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on the Canbbean 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 largecly 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 bank's ability to demonstrate control over its costs. St. Lucia 81lood Bank Cost Control Report For the Month Ended September 30 Actual Planning Budget Results Variances Liters of blood collected 610 490 Medical supplies Lab tests Equipment depreciation Rent Utilities $ 10,437 8,575 6,213 4,060 1,600 894 $ 1,862 U 5,978 3,700 1,600 235 U 360 U 800 94 U Administration 12,669 12,119 550 u Total expense $ 35,873 $ 32,772 3,101 U

Answer 1

Flexible budget performance report

	Actual results	Spending variance	Flexible budget	Activity variance	Master budget
Liters of blood collected	610		610		490
Medical supplies	10437	238 F	10675	2100 U	8575
Lab tests	6213	1229 F	7442	1464 U	5979
Equipment depreciation	4060	360 U	3700	0 None	3700
Rent	1600	0 None	1600	0 None	1600
Utilities	894	94 U	800	0 None	800
Administration	12669	178 U	12491	372 U	12119
Total expense	35873	835 F	36708	3936 U	32772