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The St. Lucia Blood Bank, a private charity partly supported by government grants, is located on...

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 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 bank’s 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 880 700 Medical supplies $ 10,268 $ 8,120 $ 2,148 U Lab tests 12,266 10,080 2,186 U Equipment depreciation 1,780 1,500 280 U Rent 1,300 1,300 0 Utilities 308 280 28 U Administration 14,185 14,000 185 U Total expense $ 40,107 $ 35,280 $ 4,827 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 neighboring 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. The following cost formulas were used to construct the planning budget: Cost Formulas Medical supplies $11.60q Lab tests $14.40q Equipment depreciation $1,500 Rent $1,300 Utilities $280 Administration $12,600 + $2.00q Required: 1. Complete the performance report for September using the flexible budget approach. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations and round your final answers to nearest whole dollar.)  

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Actual results Spending variances Flexible Budget Activity variances Planning Budget
Liters of blood collected 880 880 700
Medical supplies 10268 60 U 10208 2088 U 8120
Lab tests 12266 406 F 12672 2592 U 10080
Equipment depreciation 1780 280 U 1500 0 None 1500
Rent 1300 0 None 1300 0 None 1300
Utilities 308 28 U 280 0 None 280
Administration 14185 175 F 14360 360 U 14000
Total expense 40107 213 F 40320 5040 U 35280
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