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 Bank Cost Control Report For the Month Ended September 30 Actual Results 780 $ 9,144 10,762 1,710 1,600 276 14,560 Planning Budget 600 6,990 $ 2,154 U Variances Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration 24 8,580 1,500 1,600 2.182 U 210 U 250 26 U 180 U 14,380 Total expense $ 38,052 $ 33,300 $ 4,752 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 $11.65g $14.30g $1,500 $1,600 Medical supplies Lab tests Equipment depreciation Rent
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 Bank Cost Control Report For the Month Ended September 30 Actual Results 780 $ 9,144 10,762 1,710 1,600 276 14,560 Planning Budget 600 6,990 $ 2,154 U Variances Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration 24 8,580 1,500 1,600 2.182 U 210 U 250 26 U 180 U 14,380 Total expense $ 38,052 $ 33,300 $ 4,752 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 $11.65g $14.30g $1,500 $1,600 Medical supplies Lab tests Equipment depreciation Rent
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problem 10-22 Performance Report for a Nonprofit Organization [LO10-1, LO10-4, LO10-6]
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 Bank
Cost Control Report
For the Month Ended September 30
Planning
Budget
600
Actual
Variances
Results
780
Liters of blood collected
Medical supplies
$ 9,144
$
10,762
1,710
1,600
276
14,560
$ 38,052
6,990 $ 2,154 U
8,580
1,500
1,600
250
2,182 U
210 U
Lab tests
Equipment depreciation
Rent
Utilities
26 U
180 U
14,380
$ 33,300 $ 4,752 U
Administration
Total expense
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
$11.65q
$14.30g
$1,500
$1,600
$250
$13,300 + $1.80q
Lab tests
Equipment depreciation
Rent
Utilities
Administration](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff8151a55-1f97-4293-9574-706e6f6ba5ac%2F15e0c6b6-5fae-4939-8cc7-58e2fbf8eaa1%2Fs2queh_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 10-22 Performance Report for a Nonprofit Organization [LO10-1, LO10-4, LO10-6]
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 Bank
Cost Control Report
For the Month Ended September 30
Planning
Budget
600
Actual
Variances
Results
780
Liters of blood collected
Medical supplies
$ 9,144
$
10,762
1,710
1,600
276
14,560
$ 38,052
6,990 $ 2,154 U
8,580
1,500
1,600
250
2,182 U
210 U
Lab tests
Equipment depreciation
Rent
Utilities
26 U
180 U
14,380
$ 33,300 $ 4,752 U
Administration
Total expense
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
$11.65q
$14.30g
$1,500
$1,600
$250
$13,300 + $1.80q
Lab tests
Equipment depreciation
Rent
Utilities
Administration
Transcribed Image Text:Required:
1. Complete the performance report for September using the flexible budget approach. (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. Do not round intermediate calculations and round your final answers to nearest whole dollar.)
St. Lucia Blood Bank
Flexible Budget Performance Report
For the Month Ended September 30
Planning
Budget
Actual
Flexible
Spending Variances
Activity Variances
Results
Budget
Medical supplies
$
9,144
$
6,990
Lab tests
10,762
8,580
Equipment depreciation
1,710
1,500
Rent
1,600
1,600
Utilities
276
250
Administration
14,560
14,380
Total expense
$
38,052
$
33,300
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