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: The Little Theatre Actual Costs For the Year Ended December 31 Actual number of productions 7 Actual number of performances 168 Actors and directors wages $341,800 Stagehands wages 49,700 Ticket booth personnel and ushers wages 25,900 Scenery, costumes, and props 130,600 Theater hall rent 78,000 Printed programs 38.300 Publicity 15,100 Administrative expenses 47,500 Total $726,900 1. Use Exhibit 9-11 as your guide, prepare a flexible budget performance report for the year that shows both spending variances and activity variances. 2. 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? 3. 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?