GNB 13e Solutions Ch 10 - P10-20 St. Lucia Blood Bank 1....

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P10-20 St. Lucia Blood Bank 1. Flexible Budget Performance Report St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Budget Rate Actual Results Flexible Budget Variance Variable costs: Medical supplies $15.00 $9,250 $9,300 $(50) Lab tests $12.00 $6,180 $7,440 $(1,260) Administrative supplies $2.50 $1,740 $1,550 $190 Total variable costs $29.50 $17,170 $18,290 $(1,120) Fixed costs: Administrative salaries $10,000 $10,000 $- Equipment depreciation $2,800 $2,500 $300 Rent $1,000 $1,000 $- Utilities $570 $500 $70 Total fixed costs $14,370 $14,000 $370 Total costs $31,540 $32,290 $(750) 2. Comments After adjusting for volume, the variance for total costs is slightly favorable. This should satisfy the managing director that costs are not out of line considering the additional volume of activity in the prior month. The favorable variance for lab tests might need to be investigated. Perhaps, all the tests required were not being performed. This may have been due to the emergency created by the hurricane.
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GNB 13e Solutions Ch 10 - P10-20 St. Lucia Blood Bank 1....

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