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The Little Theatre Flexible Budget Performance Report For the Year Ended December 31 Actual Flexible Results Budget 7 70 168 168 Planning Budget 6 Number

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The Little Theatre Flexible Budget Performance Report For the Year Ended December 31 Actual Flexible Results Budget 7 70 168 168 Planning Budget 6 Number of productions Number of performances 108 $ U $ 453,700 115,700 95,900 50,500 1.900 SISI $ 259,200 75,600 F $ 144,000U 42.000 U 33,000 U 0 3,500 U S $ 403,200 117,600 92,400 128,800 151.200 59.400 3.800 0 Actors' and directors' wages Stagehands' wages Ticket booth personnel and ushers' wagos Scenery, costumes, and props Theatre hall rent Printed programs Publicity Administrative expenses 18,400U 132,600 140,000 100,300 F 11.200 8,900 2,300 14,140 19,100 110,400 97,200 70,200 14.400 86,400 $ 772,800 109,200 16,800 93,360 U 54,000 U 39,000 IU 2,400 U 6.960 U $ 339,760 U 0 S U 107,500 $ 1,164,800 Total $ 52.240 U $ 1,112,560 Part 2 of the Variable Budgeting Case requires you to use the information on the flexible budget performance report completed at Connect. (Part 1 must be completed at Connect prior to completing this portion of the case.) Part 2: Assume you have been asked to prepare a report to be given to the Board of Directors. Your written analysis should address the specific questions below. You may type directly on this document.) 1. How well did the Little Theatre control its costs during the year? Explain and identify those areas with favorable variances and those with unfavorable variances. II. The cost formulas provide numbers for the average cost per production and average cost per performance. How accurate do you believe average cost per production and average cost per performance would be for predicting the cost of a new production? Fully explain your opinion. How accurate do you believe average cost per production and average cost per performance would be for predicting the cost if an additional performance of a particular production is added? Fully explain your opinion. Identify any variables that would influence the numbers. 1

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