The Little Theatre is a nonprofit organization devoted to staging plays for children. The theater has a very small full-time professiona administrative staff. Through a special arrangement with the actors' union, actors and directors rehearse without pay and are paid on 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 t productions was Peter Rabbit, which had a six-week run with three performances on each weekend. The costs from the current yea planning budget appear below. The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions Budgeted number of performances Actors and directors wages Stagehands wages Ticket booth personnel and ushers wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses Total 6 108 $ 224,640 41,040 24,840 108,480 62,640 35,640 12,480 44,280 $ 554,040 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 t number of productions. It doesn't make any difference how many times Peter Rabbit is performed, the cost of the scenery is the sam Likewise, the cost of publicizing a play with posters and radio commercials is the same whether there are 10, 20, or 30 performance 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 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 productio 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 Little Theatre Actual Costs For the Year Ended December 31 Actual number of productions Actual number of performances Actors and directors wages Stagehands wages Ticket booth personnel and ushers wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses Total 7 168 $ 363,600 62,900 39,900 131,000 90,400 50,700 15,900 48,700 $ 803, 100 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. Required 1 Required 2 Prepare a flexible budget for The Little Theatre based on the actual activity of the year. The Little Theatre Flexible Budget For the Year Ended December 31 Actual number of productions Actual number of performances Actors' and directors' wages Stagehands' wages Ticket booth personnel and ushers' wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses Total expense Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a report for the year that shows the spending variances for all expense items. (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.) Flexible Budget The Little Theatre Spending Variances For the Year Ended December 31 Actual Results Spending Variances Number of productions 7 Number of performances 168 Actors' and directors' wages $ 363,600 Stagehands' wages 62,900 Ticket booth personnel and ushers' wages 39,900 Scenery, costumes, and props 131,000 Theater hall rent 90,400 Printed programs 50,700 Publicity 15,900 Administrative expenses 48,700 Total expense $ 803,100