The Little Theatre is a nonprofit organization devoted to staging plays for chiidren. The theater has a very small full-time professional administrative staff. Through-a special arrangement with the actors' union, actors and directors rehearse without pay and are pald only for actual performances. The Little Theatre had tentatively planned to put on six different productions with a total of 108 performances. For example, one of the productions was Peter Rabbit, which had a six-week run with three performances on each weekend. The costs from the current year's planning budget appear below. 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 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 performances of the play. On the other hand, the wages of the actors, directors, stagehands, ticket booth personnel, and ushers vary with the 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 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 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 theater's 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 remaining 10% depend on the number of performances. After the beginning of the year, the board of directors of the theater authorized expanding the theater's program to seve and a total of 168 performances. Not surprisingly, actual costs were considerably higher than the costs from the planning (Grants from donors and ticket sales were also correspondingly higher, but are not shown here.) Data concerning the act appear below: 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. The Little Theatre Flexible Budget For the Year Ended December 31 \begin{tabular}{|l|} \hline Actual number of productions \\ \hline Actual number of performances \\ \hline Actors' and directors' wages \\ \hline Stagehands' wages \\ \hline Ticket booth personnel and ushers' wages \\ \hline Scenery, costumes, and props \\ \hline Theater hall rent \\ \hline Printed programs \\ \hline Publicity \\ \hline Administrative expenses \\ \hline Total expense \\ \hline \end{tabular} The Little Theatre Spending Variances For the Year Ended December 31 \begin{tabular}{|l|r|r|} \hline & \multicolumn{1}{|c|}{\begin{tabular}{c|} Actual \\ Results \end{tabular}} & SpendingVariancesBudget \\ \hline Number of productions & & \\ \hline Number of performances & 168 \\ \hline Actors' and directors' wages & 385,700 \\ \hline Stagehands' wages & 76,100 & \\ \hline Ticket booth personnel and ushers' wages & 53,900 & \\ \hline Scenery, costumes, and props & 131,400 & \\ \hline Theater hall rent & 102,800 & \\ \hline Printed programs & 63,100 & \\ \hline Publicity & 16,700 & \\ \hline Administrative expenses & 53,500 & \\ \hline Total expense & 883,200 & \\ \hline \end{tabular}