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Peter Rabbit, which had a six - week run with three performances on each weekend. The costs from the current year s planning budget appear

Peter Rabbit, which had a six-week run with three performances on each weekend. The costs from the current years planning budget appear below.
The Little Theatre
Costs from the Planning Budget
For the Year Ended December 31
Budgeted number of productions 6
Budgeted number of performances 108
Actors and directors wages $ 224,640
Stagehands wages 41,040
Ticket booth personnel and ushers wages 24,840
Scenery, costumes, and props 108,480
Theater hall rent 62,640
Printed programs 35,640
Publicity 12,480
Administrative expenses 44,280
Total $ 554,040
Some of the costs vary 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 vary with the number of productions. It doesnt 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 performances of the play. On the other hand, the wages of the actors, directors, stagehands, ticket booth personnel, and ushers vary with the number of performances. The greater the number of performances, the higher the wage costs will be. Similarly, 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 estimate is that approximately 75% of the budgeted costs are fixed, 15% depend on the number of productions staged, and the remaining 10% depend on the number of performances.
After the beginning of the year, the board of directors of the theater authorized expanding the theaters 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 appear below:
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 $ 363,600
Stagehands wages 62,900
Ticket booth personnel and ushers wages 39,900
Scenery, costumes, and props 131,000
Theater hall rent 90,400
Printed programs 50,700
Publicity 15,900
Administrative expenses 48,700
Total $ 803,100
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.Required:
Prepare a flexible budget for The Little Theatre based on the actual activity of the year.
Prepare a report for the year that shows the spending variances for all expense items.
Complete this question by entering your answers in the tabs below.
Prepare a flexible budget for The Little Theatre based on the actual activity of the year.
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