The St. Lucia Blood Bank, a private charity partly supported bygovernment 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 hurricanethat hit neighboring islands causing many injuries. The hurricanelargely bypassed St. Lucia, but residents of St. Lucia willinglydonated their blood to help people on other islands. As aconsequence, the blood bank collected and processed over 20% moreblood than had been originally planned for the month.

A report prepared by a government official comparing actualcosts to budgeted costs for the blood bank appears below. Continuedsupport from the government depends on the blood bank’s ability todemonstrate control over its costs.

St. Lucia Blood Bank Cost Control Report For the Month Ended September 30
	Actual Results		Planning Budget		Variances
Liters of blood collected		880		700
Medical supplies	$	10,437	$	8,295	$	2,142	U
Lab tests		12,145		9,975		2,170	U
Equipment depreciation		1,840		1,600		240	U
Rent		1,700		1,700		0
Utilities		384		350		34	U
Administration		14,705		14,520		185	U
Total expense	$	41,211	$	36,440	$	4,771	U

The managing director of the blood bank was very unhappy withthis report, claiming that his costs were higher than expected dueto the emergency on the neighboring islands. He also pointed outthat the additional costs had been fully covered by payments fromgrateful recipients on the other islands. The government officialwho prepared the report countered that all of the figures had beensubmitted by the blood bank to the government; he was just pointingout that actual costs were a lot higher than promised in thebudget.

The following cost formulas were used to construct the planningbudget:

	Cost Formulas
Medical supplies	$11.85q
Lab tests	$14.25q
Equipment depreciation	$1,600
Rent	$1,700
Utilities	$350
Administration	$1.60q

Required:

1. Complete the performance report for September using theflexible budget approach. (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values. Do not round intermediate calculations and roundyour final answers to nearest whole dollar.)

	St. Lucia Blood Bank Flexible Budget Performance Report For the Month Ended September 30 Actual Results Spending Variances Flexible Budget Activity Variances Planning Budget Medical supplies $10,437 $8,295 Lab tests 12,145 9,975 Equipment depreciation 1,840 1,600 Rent 1,700 1,700 Utilities 384 350 Administration 14,705 14,520 Total expense $41,211 $36,440