The following cost formulas were used to construct the planning budget: Cost Formulas $17.00g $12.009 $3,600 $1,550 $775 $10,550 + $3.00q Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Required: 1.Complete the flexible budget performance report for September. Note: 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. Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget 620 $ 10,350 6,235 $ 3,955 1,550 867 12,595 35,552 Planning Budget 500 8,500 6,000 3,600 1,550 775 12,050 $ 32,475 $
The following cost formulas were used to construct the planning budget: Cost Formulas $17.00g $12.009 $3,600 $1,550 $775 $10,550 + $3.00q Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Required: 1.Complete the flexible budget performance report for September. Note: 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. Liters of blood collected Medical supplies Lab tests Equipment depreciation Rent Utilities Administration Total expense Actual Results Saint Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget 620 $ 10,350 6,235 $ 3,955 1,550 867 12,595 35,552 Planning Budget 500 8,500 6,000 3,600 1,550 775 12,050 $ 32,475 $
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 1E: Budget performance reports for cost centers Partially completed budget performance reports for...
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Question
![The following cost formulas were used to construct the planning budget:
Medical supplies.
Lab tests
Equipment depreciation
Rent
Utilities
Administration
Cost Formulas
Liters of blood collected
Medical supplies
Lab tests
Equipment depreciation
Required:
1.Complete the flexible budget performance report for September.
Rent
Utilities
Administration
Total expense
$3,600
$1,550
$775
$10,550 + $3.009
Note: 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.
$17.00q
$12.009
Actual
Results
$
Saint Lucia Blood Bank
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Budget
620
$ 10,350
6,235
3,955
1,550
867
12,595
35,552
Planning
Budget
$
$
500
8,500
6,000
3,600
1,550
775
12,050
32,475](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe50cecdb-0695-4d5e-9af0-412b259d27be%2Fd290aa52-aaf6-4eba-95c4-2305006a8a7e%2F84ocgu_processed.png&w=3840&q=75)
Transcribed Image Text:The following cost formulas were used to construct the planning budget:
Medical supplies.
Lab tests
Equipment depreciation
Rent
Utilities
Administration
Cost Formulas
Liters of blood collected
Medical supplies
Lab tests
Equipment depreciation
Required:
1.Complete the flexible budget performance report for September.
Rent
Utilities
Administration
Total expense
$3,600
$1,550
$775
$10,550 + $3.009
Note: 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.
$17.00q
$12.009
Actual
Results
$
Saint Lucia Blood Bank
Flexible Budget Performance Report
For the Month Ended September 30
Flexible
Budget
620
$ 10,350
6,235
3,955
1,550
867
12,595
35,552
Planning
Budget
$
$
500
8,500
6,000
3,600
1,550
775
12,050
32,475
![The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia.
The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hit
neighboring islands causing many injuries. The hurricane largely bypassed Saint Lucia, but residents of Saint 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.
Saint Lucia Blood Bank
Cost Control Report.
For the Month Ended September 30
Liters of blood collected
Medical supplies
Lab tests
Equipment depreciation
Rent
Utilities
Administration
Total expense
Actual
Results
620
$ 10,350
6,235
3,955
1,550
867
12,595
$ 35,552
Planning
Budget
500
$ 8,500
6,000
3,600
1,550
775
12,050
$ 32,475
Variances
$1,850 U
235 U
355 U
0
92 U
545 U
$ 3,077 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe50cecdb-0695-4d5e-9af0-412b259d27be%2Fd290aa52-aaf6-4eba-95c4-2305006a8a7e%2F787l3zi_processed.png&w=3840&q=75)
Transcribed Image Text:The Saint Lucia Blood Bank, a private charity partly supported by government grants, is located on the Caribbean island of Saint Lucia.
The blood bank has just finished its operations for September, which was a very busy month due to a powerful hurricane that hit
neighboring islands causing many injuries. The hurricane largely bypassed Saint Lucia, but residents of Saint 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.
Saint Lucia Blood Bank
Cost Control Report.
For the Month Ended September 30
Liters of blood collected
Medical supplies
Lab tests
Equipment depreciation
Rent
Utilities
Administration
Total expense
Actual
Results
620
$ 10,350
6,235
3,955
1,550
867
12,595
$ 35,552
Planning
Budget
500
$ 8,500
6,000
3,600
1,550
775
12,050
$ 32,475
Variances
$1,850 U
235 U
355 U
0
92 U
545 U
$ 3,077 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.
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