The managing director of the blood bank was very unhappy with this report, clalming that his costs were higher than expected due to the emergency on the nelghboring Islands. He also pointed out that the additional costs had been fully covered by payments from grateful reciplents 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 polnting out that actual costs were a lot higher than promlsed In the budget. The following cost formulas were used to construct the planning budget: Cost Formulas Medical supplies $14.50g Lab tests $11.00g $3,100 Equipment depreciation Rent $1, 300 Utilities $650 Administration $18, 300 + $2.50q Required: 1.Complete the flexible budget performance report for September. (Indlcate the effect of each verlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

I am having trouble with this chapter we moved on  to the necktie chapter last week but I'm still having trouble with some of the problems this is one of them

The managing director of the blood bank was very unhappy with this report, clalming that his costs were higher than expected due to
the emergency on the nelghboring Islands. He also polnted out that the additlonal costs had been fully covered by payments from
grateful recipients on the other Islands. The government officlal 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
$14.50q
$11.00g
$3,100
$1,300
$650
Medical supplies
Lab tests
Equipment depreciation
Rent
Utilities
Administration
$10,300 + $2.50q
Requlred:
1.Complete the flexible budget performance report for September. (Indicate the effect of each varlance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltive values.)
St.Lucia Blood Bank
Flexible Budget Performance Report
For the Month Ended September 30
Actual
Results
Flexible
Budget
Planning
Budget
440
Liters of blood collected
560
6,380
Medical supplies
7,788
4,840
Lab tests
5,025
3,100
Equipment depreciation
3,430
1,300
Rent
1,300
650
Utilities
732
11,400
Administration
11,920
27,670
Total expense
30,195
Transcribed Image Text:The managing director of the blood bank was very unhappy with this report, clalming that his costs were higher than expected due to the emergency on the nelghboring Islands. He also polnted out that the additlonal costs had been fully covered by payments from grateful recipients on the other Islands. The government officlal 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 $14.50q $11.00g $3,100 $1,300 $650 Medical supplies Lab tests Equipment depreciation Rent Utilities Administration $10,300 + $2.50q Requlred: 1.Complete the flexible budget performance report for September. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltive values.) St.Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget 440 Liters of blood collected 560 6,380 Medical supplies 7,788 4,840 Lab tests 5,025 3,100 Equipment depreciation 3,430 1,300 Rent 1,300 650 Utilities 732 11,400 Administration 11,920 27,670 Total expense 30,195
The St Lucla Blood Bank, a prlvate charity partly supported by government grants, Is located on the Carlbbean Island of St. Lucia. The
blood bank has just finished Its operations for September, which was a very busy month due to a powerful hurricane that hit
nelghbortng Islands causing many Injurles. The hurricane largely bypassed St. Lucla, but residents of St. Lucla 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 officlal comparing actual costs to budgeted costs for the blood bank appears below. Continued
support from the government depends on the blood bank's ablity to demonstrate control over Its costs.
St. Lucia Blood Bank
Cost Control Report
For the Month Ended September 30
Planning
Budget
Actual
Results
Variances
Liters of blood collected
560
440
6,380
4,840
3,100
$ 1,408 U
Medical supplies
Lab tests
7,788
5,025
3,430
185 U
Equipment depreciation
330 U
1,300
732
Rent
1,300
Utilities
Administration
650
82 U
11,920
11,400
520 U
Total expense
$ 30,195
$ 27,670
$ 2,525 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 nelghboring Islands. He also polnted out that the additional costs had been fully covered by payments from
grateful reclplents 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 polnting 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
Lab tests
Equipment depreciation
Rent
Cost Formulas
$14.50g
$11.00g
33,100
$1,300
$650
Utilities
Administration
Required:
1.Complete the flexible budget performance report for September (Indicate the effect of each varlance by selecting "F" for
favoreble, "U" for unfavorable, and "None" for no effect (I.e.. zero varlance). Input all amounts as positlve values.)
Transcribed Image Text:The St Lucla Blood Bank, a prlvate charity partly supported by government grants, Is located on the Carlbbean Island of St. Lucia. The blood bank has just finished Its operations for September, which was a very busy month due to a powerful hurricane that hit nelghbortng Islands causing many Injurles. The hurricane largely bypassed St. Lucla, but residents of St. Lucla 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 officlal comparing actual costs to budgeted costs for the blood bank appears below. Continued support from the government depends on the blood bank's ablity to demonstrate control over Its costs. St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Planning Budget Actual Results Variances Liters of blood collected 560 440 6,380 4,840 3,100 $ 1,408 U Medical supplies Lab tests 7,788 5,025 3,430 185 U Equipment depreciation 330 U 1,300 732 Rent 1,300 Utilities Administration 650 82 U 11,920 11,400 520 U Total expense $ 30,195 $ 27,670 $ 2,525 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 nelghboring Islands. He also polnted out that the additional costs had been fully covered by payments from grateful reclplents 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 polnting 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 Lab tests Equipment depreciation Rent Cost Formulas $14.50g $11.00g 33,100 $1,300 $650 Utilities Administration Required: 1.Complete the flexible budget performance report for September (Indicate the effect of each varlance by selecting "F" for favoreble, "U" for unfavorable, and "None" for no effect (I.e.. zero varlance). Input all amounts as positlve values.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Managing Debt
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education