The Little Theatre is a nonprofit organization devoted to staging plays for children. The theatre 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 paid only for actual performances. The costs from the current years planning budget appear below. The Little Theatre had tentatively planned to put on five different productions with a total of 50 performances. For example, one of the productions was Peter Rabbit, which had a six-week run with three performances on each weekend. The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions 5 Budgeted number of performances 50 Actors and directors wages $ 145,000 Stagehands wages 24,500 Ticket booth personnel and ushers wages 10,000 Scenery, costumes, and props 44,500 Theatre hall rent 39,500 Printed programs 10,500 Publicity 15,000 Administrative expenses 45,000 Total $ 334,000 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 pin down, but the best estimate is that approximately 80% of the budgeted costs are fixed, 15% depend on the number of productions staged, and the remaining 5% 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 four productions and a total of 54 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 4 Actual number of performances 54 Actors and directors wages $ 194,000 Stagehands wages 26,100 Ticket booth personnel and ushers wages 11,500 Scenery, costumes, and props 40,800 Theatre hall rent 44,100 Printed programs 10,950 Publicity 14,000 Administrative expenses 43,450 Total $ 384,900 Required: 1. Complete the flexible budget for The Little Theatre based on the actual activity of the year. 2. Complete the flexible budget performance report for the year that shows both activity variances and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)