Need help with Flexible Budgets and Performance Analysis. I only need help with question #2. Question #1 answers are below for reference.

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. St. Lucia Blood Bank Cost Control Report For the Month Ended September 30 Actual Planning Results Budget Variances Liters of blood collected 620 500 Medical supplies..... $ 9,250 $ 7.500 $1,750 U Labtests 6,180 6.000 180 U Equipment depreciation 2,800 2.500 300 U Rent 1,000 1,000 Ulties 570 500 70 U Administration 11.740 11.250 490 U Total expense. $31.540 $28.750 $2.790 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 govem ment; he was just pointing out that actual costs were a lot higher than promised in the budget. The following cost formulas were used to construct the planning budget: Cost Formulas Medical supplies....... $15.000 Labtests $12.000 Equipment depreciation .... $2,500 Rent $1,000 Utilities $500 Administration....... . $10,000+ $2.500 Required 1. Using Exhibit 9-8 as your guide, prepare a flexible budget performance report for September. 2. Do you think any of the variances in the report you prepared should be investigated? Why? B H C D Activity variances (B - A) Planning budget (A) E Flexible budget (B) F G Spending variances (C-B) Particulars Actual budget (C) 620 2 Liters of blood collected 500 620 $1,800 U $1,440 U SO 4 Expenses 5 Medical supplies ($15.00 perc) 6 Lab tests (S12.00 per q) 7 Equipment depreciation 8 Rent ($1.00 per ) 9 Utilities 10 Administration ($10,000+ $2.50 per ) 11 Total Expense $7,500 $6,000 $2,500 $1,000 S500 $11,250 $28,750 SO $9,300 $7,440 $2,500 $1,000 $500 S11,550 $32,290 (550) F ($1,260) F $300 U so $70 U $190 U ($750) FL $9,250 $6,180 $2,800 $1,000 $570 S11,740 $31,540 SO $300 U $3,540 U