PART 1:

PART 2:

After receiving a copy of this cost report, the supervisor of the Assembly Department stated, "These reports are super. It makes me feel really good to see how well things are going in my deportment. I can't understand why those people upstairs complain so much obout the reports." For the last several years, the company's marketing department has chronically failed to meet the sales goals expressed in the company's monthly budgets. Required: 1. The company's president is uneasy about the cost reports, identify at least two reasons. 2. What kind of reports should be used to give better insight into how well depsrtmental supervisors are controlling costs? 3. Complete the new performance report for the quarter, bosed on Flexible Budget Performance approsch. 4. Were costs well controlled in March? Complete this question by entering your answers in the tabs below. Complete the new performance report for the quarter, based on Flexible Budget. Performance approach. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Some of the costs vory with the number of productions, some with the number of performances, and some are fixed and depend on neither the number of productions nor the number of performances. The costs of scenery, costumes, props, and publicity very with the number of productions. It doesn't make any difference how many times Peter Rabbit is performed, the cost of the scenery is the same. Likewise, the cost of publicizing a play with posters and radio commercials is the same whether there are 10 . 20 , or 30 performences of the plsy. On the other hand, the wages of the sctors, directors, stegehands, ticket booth personnel, and ushers vary with the number of performances. The greater the number of performences, the higher the wage costs vill be. Similsrly, the costs of renting the hall and printing the programs will vary with the number of performances. Administrative expenses are more difficult to analyze, but the best estimste is thet approximetely 75% of the budgeted costs are fixed, 15% depend on the number of productions steged, and the remaining 10% depend on the number of performances. After the beginning of the year, the boord of directors of the thester authorized exponding the theoter's program to seven productions and a totel 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.) Date concerning the sctual costs were os follows: Required: 1. Prepsre a flexible budget performsnce report for the year that shows both spending variances and sctivity variances. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)