After the beginning of the year, the board of directors of the theater authorized expanding the theater's program to seven productions and a

total of $168$ performances. Not surprisingly, actual costs were considerably higher than the costs from the planning budget. $($Grants from

'donors and ticket sales were also correspondingly higher, but are not shown here.$)$ Data concerning the actual costs were as follows:

Required:

Use Exhibit $9-11$ as your guide, prepare a flexible budget performance report for the year that shows both spending variances and

activity variances.

If you were on the board of directors of the theater, would you be pleased with how well costs were controlled during the year? Why, or

why not?

The cost formulas provide figures for the average cost per production and average cost per performance. How accurate do you think

these figures would be for predicting the cost of a new production or of an additional performance of a particular production?