The managing director of the blood bank was very unhappy with this report claimi

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. The following cost formulas were used to construct the planning budget:Required:1. Prepare a new performance report for September using the flexible budget approach.2. Do you think any of the variances in the report you prepared should be investigated?Why?