Performance Report using a Flexible Budget Approach

See attached file for proper format.

The KGV 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 is given below. (The currency on St. Lucia is the East Caribbean dollar.) Continued support from the government depends on the blood bank's ability to demonstrate control over its costs.

KGV Blood Bank
Cost Control Report
For the Month Ended September 30
Planning
Budget Actual
Results Variances
Liters of blood collected 600 780
Medical supplies $ 7,110 $ 9,252 $ 2,142 U
Lab tests 8,610 10,782 2,172 U
Equipment depreciation 1,900 2,100 200 U
Rent 1,500 1,500 0
Utilities 300 324 24 U
Administration 14,310 14,575 265 U
________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________
Total expense $ 33,730 $ 38,533 $ 4,803 U
________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________________________________________________
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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:

Medical supplies $11.85q
Lab tests $14.35q
Equipment depreciation $1,900
Rent $1,500
Utilities $300
Administration $13,200 + $1.85q
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Required:
1. Complete the performance report for September using the flexible budget approach. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

KGV Blood Bank
Flexible Budget Performance Report
For the Month Ended September 30
Activity Variances Spending Variances
Medical supplies $
$

Lab tests

Equipment depreciation

Rent

Utilities

Administration

________________________________________ ________________________________________
Total expense $
$.