25.00 points The St Lucia Blood Bank, a private charity partly supported by gove

Question

25.00 points The St Lucia Blood Bank, a private charity partly supported by government grants, is located on the Canibbean island of St. Lucia. The blood bank has just finished its operations for September, which was a particularty 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 orniginally 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 880 Budget Variances Lters of blood collected 700 Medical supplies Lab tests $10,297 S 8.155 $ 2,142 U 12.151 9,975 2.176 U 1.850 1,600 250 U Equipment depreciation Rent Utilities 1,000 340 1,000 310 30 U 14,595 14.430 165 U Administration Total expense 40.233 $ 35,470 $ 4,763 U The managing arector of the blood bank was very unhappy with this report ciaiming that his costs were borng isiands He also pointed out that the tnan expected que to the e had been on tne governement ofmicial who prepared the report counterea hat al of the ngures nad govemment he was just pointing out that act

Explanation / Answer

Formulas Actual Results Planning Budget Variances Actual Results Variances Liters of Blood Collected 880.00 700.00 Medical Supplies 11.65q $10,297.00 $8,155.00 $2,142.00 U Lab Tests 14.25q $12,151.00 $9,975.00 $2,176.00 U Equipment Depreciation 1600 $1,850.00 $1,600.00 $250.00 U Rent 1000 $1,000.00 $1,000.00 $0.00 Utilities 310 $340.00 $310.00 $30.00 U Administration 13,100+1.900q $14,595.00 $14,430.00 $165.00 U Total Expense $40,233.00 $35,470.00 $4,763.00 U 1. Prepare a new performance report for September using the flexible budget approach. Actual Results            Spending Variances Flexible Budget (880 x Formulas)      Activity Variance Planning Budget Medical Supplies $10,297.00 $45.00 U $10,252.00 $2,097.00 U $8,155.00 Lab Tests $12,151.00 $389.00 F $12,540.00 $2,565.00 U $9,975.00 Equipment Depreciation $1,850.00 $250.00 U $1,600.00 $0.00 None $1,600.00 Rent $1,000.00 $0.00 None $1,000.00 $0.00 None $1,000.00 Utilities $340.00 $30.00 U $310.00 $0.00 None $310.00 Administration $14,595.00 $177.00 F $14,772.00 $342.00 U $14,430.00 Total Expense $40,233.00 $891.00 F $40,474.00 $5,004.00 U $35,470.00

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