The Little Theatre is a nonprofit organization devoted to staging plays for children. 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 paid 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 ore fixed and depend on neither the number of productions nor the number of performances. The costs of scenery, costumes, props, and publicity vory 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 some. 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, stogehands, ticket booth personnel, and ushers vory with the number of performances. The greater the number of performances, the higher the woge costs will be. Similarly, the costs of renting the hall and printing the programs will vary with the number of performonces. Administrotive 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 performonces After the beginning of the year, the boord of directors of the theoter outhorized expanding the theater's program to seven productions and a total of 168 performances. Not surprisingly, octual costs were considerably higher than the costs from the planning budget. (Grants from donors and ticket sales were oiso correspondingly higher, but are not shown here) Dato concerning the octual costs oppear below: 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: Required: 1. Prepare of fexible budget for The Little Theatre based on the actual activity of the year 2. Prepore o report for the year that shows the spending variances for all expense items. Complete this question by entering your answers in the tabs below. Prepare a flexible budget for The Little Theatre based on the actual activity of the year
