A report prepared by a government official comparing actual costs to budgeted costs for the Blood Bank appears below. (The currency on Antigua is the East Caribbean dollar.) Continued support from the government depends on the Blood Bank’s ability to demonstrate control over its costs.
Antigua Blood Bank
Cost Control Report
For the Month Ended September 30
Actual Budget Variance
Liters of blood collected 320 240 80
Medical supplies $ 4,650 $ 3,360 $ 1,290 U
Lab tests 2,800 2,760 40 U
Refreshments for donors 2,188 1,488 700 U
Administrative supplies 620 480 140 U
Total variable cost 10,258 8,088 2,170 U
Staff salaries 8,000 8,000 0
Equipment depreciation 1,400 1,000 400 U
Rent 500 500 0
Utilities 250 225 25 U
Total fixed cost 10,150 9,725 425 U
Total cost $20,408 $17,813 $2,595 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.
1. Prepare a new performance report for September using the flexible budget approach. (Note: Even though some of these costs might be classified as direct costs rather than as overhead, the flexible budget approach can still be used to prepare a flexible budget performance report.)
2. Do you think any of the variances in the report you prepared should be investigated? Why?
Plagiarism Free Papers
All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.
All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.
A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.
Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.
Originality & Security
At thehomeworkwritings.com, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.
24/7 Customer Support
Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
We work around the clock to see best customer experience.
Our prices are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.
Admission help & Client-Writer Contact
When you need to elaborate something further to your writer, we provide that button.
We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.
Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.