Question

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. 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 Planning Budget Actual Variances Results Liters of blood collected 560 440 Medical supplies $ 7,788 $ 1,408 U $6,380 4,840 3,100 1,300 Lab tests 5,025 3,430 1,300 185 U Equipment depreciation 330 U 0 Rent Utilities 82 U 732 650 Administration 11,920 11,400 520 U $30,195 $ 27,670 $ 2,525 U Total expense

Answer 1

Flexible budget performance report

	Actual results	Spending variance	Flexible budget	Activity variance	Planning budget
Liters of blood collected	560		560		440
Medical supplies	7788	332 F	8120	1740 U	6380
Lab tests	5025	1135 F	6160	1320 U	4840
Equipment depreciation	3430	330 U	3100	0 None	3100
rent	1300	0 None	1300	0 None	1300
Utilities	732	82 U	650	0 None	650
Administration	11920	220 U	11700	300 U	11400
Total expense	30195	835 F	31030	3360 U	27670