Problem 2- Blood bank - Flexible budget analysis
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| Problem 2 | Worth 6.5 pts. | ||||||||
| A small local blood bank has been trying to support the needs of the community, and has processed over | |||||||||
| 20% more blood than had been originally planned for the month. The following is a cost control report. | |||||||||
| Blood Bank | |||||||||
| Cost control report | |||||||||
| For the Month ended April 20XX | |||||||||
| Actual | Budget | Variance | |||||||
| Liters of blood collected | 600 | 500 | 100 | ||||||
| Variable Costs: | |||||||||
| Medical Supplies | $ 9,000 | $ 8,000 | $ 1,000 | U | |||||
| Lab Tests | 6,800 | 6,000 | 800 | U | |||||
| Refreshment for Donors | 1,350 | 1,100 | 250 | U | |||||
| Administrative supplies | 500 | 375 | 125 | U | |||||
| Total variable costs | 17,650 | 15,475 | 2,175 | U | |||||
| Fixed Costs | |||||||||
| Staff Salaries | $ 10,000 | $ 10,000 | 0 | ||||||
| Equipment Depreciation | 2,800 | 2,750 | 50 | U | |||||
| Rent | 1,000 | 1,000 | 0 | ||||||
| Insurance | 570 | 530 | 40 | U | |||||
| Total Fixed Costs | 14,370 | 14,280 | 90 | U | |||||
| Total Cost | 32,020 | 29,755 | 2,265 | 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 emergencies in the community. The managing director has heard that you just finished a | |||||||||
| course that discussed flexible budgets. He has asked you to assist him in developing a flexible budget that | |||||||||
| will show his superiors that he has controlled costs in most areas. | |||||||||
| Grading Rubric: | |||||||||
| Each number in revised cost control report | 0.2 | pt. each | |||||||
| U or F variance designation | 0.25 | pt. each | |||||||
| Comments each for #2 and #3 | 0.5 | ||||||||
| Total points possible | 6.5 | ||||||||
| Required: | Hint: Review the narrated PowerPoint for chapter 11 | ||||||||
| 1. Prepare a new cost control report for April using the flexible performance approach. | |||||||||
| The variable and fixed cost labeling has been set correctly, so do not change this around. | |||||||||
| 2. Comment on how you developed this revised report and what it means. | |||||||||
| 3. Do you think any of the variances in the report you prepared should be investigated? Why? | |||||||||
11 years ago
Problem 2- Blood bank - Flexible budget analysis
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problem_2-_blood_bank_-_flexible_budget_analysis.xls
