The St Lucia Blood Bank a private charity partly supported b

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 Planning Results Budget Variances Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration 680 500 $ 7,898 $ 5,750 $2,148 U 9,4137,225 2,188 U 2,260 2,000 260 U 1,6001,600 294 270 24 U 13,660 13,500 160 U Total expense $ 35,125 30,345 $4,780 U

Solution

Flexible Budget Performance Report For September 30 Actual Spending Variance Flexible Budget Planning Budget Medical Supplies 7898 78 U 7820 2070 U 5750 Lab test 9413 413 F 9826 2601 U 7225 Equipment Depreciation 2260 260 F 2000 0 None 2000 Rent 1600 0 None 1600 0 None 1600 Utilities 294 24 U 270 0 None 270 Admin 13660 128 F 13788 288 U 13500 Total Expense 35125 179 F 35304 4959 U 30345