Please help me answer this quesiton The St. Lucia Blood Bank, a private charity

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Please help me answer this quesiton

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:

Explanation / Answer

Cost elements Cost Formula Planned Budget for 500 litres of blood collected Flexible Budget for 620 litres of blood collected Actual result for 620 litres of blood collected Revenue /Spending Variance (Flexible Budget - Actual) Favourable/Unfaourable Activity Varaiance(Planned budget -Flexible Budget) Favourable/Unfaourable $ $ $ $ $ Medical Supplies $15q 7500 9300 9250 50 F -1800 U Lab Tests $12q 6000 7440 6180 1260 F -1440 U Depreciation $2500 2500 2500 2800 -300 U 0 N Rent $1000 1000 1000 1000 0 N 0 N Utilities $500 500 500 570 -70 U 0 N Administration $10000 + $2.50q 11250 11550 11740 -190 U -300 U Total (B) 28750 32290 31540 750 F -3540 U

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