The St. Lucia Blood Bank, a private charity partly supported by government grant
ID: 2595427 • Letter: T
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 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.
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:
Required:
1.Complete the flexible budget performance report for September. (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.)
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 BankCost Control Report
For the Month Ended September 30 Actual Results Planning Budget Variances Liters of blood collected 620 500 Medical supplies $ 10,350 $ 8,500 $ 1,850 U Lab tests 6,235 6,000 235 U Equipment depreciation 3,955 3,600 355 U Rent 1,550 1,550 0 Utilities 867 775 92 U Administration 12,595 12,050 545 U Total expense $ 35,552 $ 32,475 $ 3,077 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 $17.00q Lab tests $12.00q Equipment depreciation $3,600 Rent $1,550 Utilities $775 Administration $10,550 + $3.00q
Required:
1.Complete the flexible budget performance report for September. (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.)
St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget Liters of blood collected 620 500 Medical supplies $10,350 $8,500 Lab tests 6,235 6,000 Equipment depreciation 3,955 3,600 Rent 1,550 1,550 Utilities 867 775 Administration 12,595 12,050 Total expense $35,552 $32,475Explanation / Answer
1.Complete the flexible budget performance report for September. (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.)
St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Results Revenue and spending variance Flexible Budget Activity variance Planning Budget Liters of blood collected 620 620 500 Medical supplies $10,350 190 F 10540 2040 U $8,500 Lab tests 6,235 1205 F 7440 1440 U 6,000 Equipment depreciation 3,955 355 U 3600 None 3,600 Rent 1,550 None 1550 None 1,550 Utilities 867 92 U 775 None 775 Administration 12,595 185 U 12410 360 U 12,050 Total 35552 763 F 36315 3840 U 32475Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.