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The Litile Theatre is a nonproft organization devoted to steging plays for children. The theater has a very smas ful-time protessional administrative staft. Through a speclal arrangement with the actors union, ociors and directors rehearse without pay and are paid cnly for actuat performances. The Little Theatre had tentatively planned to put on six different productions with a total of 108 performances. For example, one of the productions was Peter Rabbit, which had a six-week tun with three performances on each weekend. The costs from the current year's planning budget eppear below. Some of the costs vary with the number of productions, tome with the number of pertormances, and some are facd and depend on nether the murtber of productions nor the number of performances. The costs af scenery, costurnes, props, and publety vary with the number of productions. it doesnt make any difference how mbny times Potor Raboit is pertormed, the cosf of the scenery is the same. Uhwwive, the cost of pubticiting a play with posters and rodio commercias is the same whether there are 10,20 , or 30 perlocmances of the piry Oe the other hand, the wages of the actors, drectors, stagehands, ticket beoth personnel and ushers vary weh the number of performanoes. The gremted the number of performances, the higner the woge costs wili be. Simlarly, the casts of renoing the hatl and printing the programi will vary with the number of performances. Adminstrative expenses are more diffcut to analyze, but the best estimuse is that approximatoly 75% of the budgeted costs are fored, 15% depend on the number of productions staged. and the remaining 10 s depend on the number of performances. Atim the beginning of the yeac, the bowd of doectors of the theater authorized expanding the theaters arogam to seven productions and a totat of t6e performances Not surprisingly. actuat costs were considerably higher that the colts from the plarining budged IGeans from donges and ticket sales were also correspondingly tighec, but are not thown here.j Daes conceming the actuat costs Required: 1. Prepare a flexible budget for The Little Theatre based on the actual activity of the year. 2. Prepare a report for the year that shows the spending variances for all expense items. Prepare a flexible budget for The Little Theatre based on the actual activity of the year. Spending Variances For the Year Ended December 31 \begin{tabular}{|l|r|c|} \hline & \multicolumn{1}{|c|}{\begin{tabular}{c|c|} \hline Actual \\ Results \end{tabular}} & SpendingVariancesBudget \\ \hline Number of productions & 7 & \\ \hline Number of performances & 168 & \\ \hline Actors' and directors' wages & 447,900 & \\ \hline Stagehands' wages & 112,400 & \\ \hline Ticket booth personnel and ushers' wages & 92,400 & \\ \hline Scenery, costumes, and props & 132,500 & \\ \hline Theater hall rent & 136,900 & \\ \hline Printed programs & 97,200 & \\ \hline Publicity & 18,900 & \\ \hline Administrative expenses & 56,000 & \\ \hline Total expense & $1,094,200 & \\ \hline \end{tabular}