Prepare a flexible budget for The Little Theater based on the actual activity of the year. Prepare a flexible budget performance report for the year that shows both activity variances and spending 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? Step 1: Calculate your formulas. Step 2: Use the formulas to calculate the flexible budget (center column of the report) The actual activity is used in the budget formula to calculate what the budget would (or should) be at the actual activity level. Step 3: Calculate the activity variances. If the flexible budget revenue is higher than the static budget revenue, the variance is favorable. If the flexible budget expense is higher than the static budget expense, the variance is unfavorable. Step 4: Calculate the revenue or spending variances. If the flexible budget revenue is higher than the actual revenue, the variance is unfavorable. If the flexible budget for expense is higher than actual expenses, the variance is favorable. Prepare a flexible budget for The Little Theater based on the actual activity of the year. Prepare a flexible budget performance report for the year that shows both activity variances and spending 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? Step 1: Calculate your formulas. Step 2: Use the formulas to calculate the flexible budget (center column of the report) The actual activity is used in the budget formula to calculate what the budget would (or should) be at the actual activity level. Step 3: Calculate the activity variances. If the flexible budget revenue is higher than the static budget revenue, the variance is favorable. If the flexible budget expense is higher than the static budget expense, the variance is unfavorable. Step 4: Calculate the revenue or spending variances. If the flexible budget revenue is higher than the actual revenue, the variance is unfavorable. If the flexible budget for expense is higher than actual expenses, the variance is favorable