Short Answer #1: Prepare a flexible budget performance report for the year that shows both spending variances and activity variances. Use the following information to answer.

The Big Theatre

Costs from the planning budget

For the year ended December 31

Budgeted number of productions: 12

Budgeted number of performances: 216

Actors and director wages: $440640

Stagehand wages:m$73440

Ticket booth personnel and ushers ages: $41040

Scenery, costumes, and props: $216480

Theatre hall rent: $116640

Printed program: $62640

Publicity: $24480

Administrative expenses: $95040

Total: $1070400

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 productstions nor the number of performances. The cost of scenery and costumes and the costs of publicity vary with the number of productions. Each new production would require new costumes. On the other hand, all of the wages 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, and the remaining 10% depend on the number of performances. After the beginning of the year, the board of directors of the theatre authorized expanding the theatres program to fourteen productions and a total of 336 performances

Information for actual costs:

The Big Theatre

Actual costs

For the year ended December 31

Actual number of productions: 14

Actual number of performances: 336

Actors and firector wages: $705200

Stagehand wages: $112600

Ticket booth personnel and ushers ages: $65800

Scenery, costumes, and props: $261600

Theatre hall rent: $168400

Printed program: $89000

Publicity: $31000

Administrative expenses: $107000

Total: $1540600