60.1K

Verified Solution

Link Copied!

The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint 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 injurles. The hurricane largely bypassed Saint Lucia, but residents of Saint 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 wos very unhappy with this report, cloiming that his costs were higher than expected due to the emergency on the neighboring istands. He also pointed out thot the additional costs had been fully covered by poyments from grateful recipients on the other isiands. The govecnment official who prepored the report countered that all of the figures had been submitted by the blood bank to the government, he was just pointing out that octual costs were o lot higher than promised in the budget. The following cost formulas were used to construct the plonning 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.)

Answer & Explanation Solved by verified expert

See Answer