The Little Theatre is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professional odministrative staff. Through o special arrongement with the actors' union, octors and directors reheorse without pay and are poid only for actusi performances. The Little Thestre had tentatively planned to put on six different productions with a total of 108 performances. For example, one of the productions wos Peter Robbit, which had s six-week run with three performsnces on esch weekend. The costs from the current year's plonning budget appear below. Some of the costs vory 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 Robbit 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 vory with the number of performances. The greater the number of performences, the higher the woge 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 anslyze, 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 boord of directors of the thester suthorized exponding the thester's progrem to seven productions and o total of 168 performances. Not surprisingly, actual costs were considersbly higher then 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 oppear below: Required: 1. Prepore a flexible budget for The Little Thestre bosed on the sctual activity of the year. 2. Prepare o report for the yeor that shows the spending variances for all expense items