The Saint Lucla Blood Bank, a private charity partly supported by government grants, is located on the Caribbean Island of Saint Lucla.
The blood bank Just finlshed its operations for September, which was a very busy month because a powerful hurricane caused many
injurles on neighboring islands. The hurricane largely bypassed Saint Lucla, but residents of Saint Lucla willingly donated their blood to
help people on other islands. As a consequence, the blood bank collected over more blood than originally planned for the month.
A report prepared by a government officlal 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 the unfavorable varlances in this report, claiming his costs were
higher than expected due to the emergency on the neighboring islands. He also pointed out the additional costs had been fully
covered by payments from grateful reciplents on the other islands. The government officlal who prepared the report countered that all
figures had already been submitted by the blood bank to the government; he was just pointing out actual costs were a lot higher than
promised in the budget.
The following cost formulas were used to prepare the planning budget:
Required:
Complete the flexible budget performance report for September.
Note: Indicate the effect of each varlance by selecting F for favorable, U for unfavorable, and "None" for no effect le zero
variance input all amounts as positive values.
Saint Lucia Blood Bank
Flexible Budget Performance Report
For the Month Ended September
