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 years planning budget appear below.

The Little Theatre Costs from the Planning Budget For the Year Ended December 31
Budgeted number of productions	6
Budgeted number of performances	108
Actors and directors wages	$ 252,720
Stagehands wages	69,120
Ticket booth personnel and ushers wages	52,920
Scenery, costumes, and props	110,040
Theater hall rent	90,720
Printed programs	63,720
Publicity	14,040
Administrative expenses	79,920
Total	$ 733,200

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 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 theaters 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 were as follows:

The Little Theatre Actual Costs For the Year Ended December 31
Actual number of productions	7
Actual number of performances	168
Actors and directors wages	$ 436,500
Stagehands wages	105,800
Ticket booth personnel and ushers wages	85,400
Scenery, costumes, and props	132,300
Theater hall rent	130,700
Printed programs	91,000
Publicity	18,500
Administrative expenses	98,500
Total	$ 1,098,700

Required:

1. Prepare a flexible budget performance report for the year that shows both spending variances and activity 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.)

The Little Theatre
Flexible Budget Performance Report
For the Year Ended December 31
	Actual Results			Flexible Budget			Planning Budget
Number of productions	7						6
Number of performances	168						108
Actors' and directors' wages	$436,500						$252,720
Stagehands' wages	105,800						69,120
Ticket booth personnel and ushers' wages	85,400						52,920
Scenery, costumes, and props	132,300						110,040
Theatre hall rent	130,700						90,720
Printed programs	91,000						63,720
Publicity	18,500						14,040
Administrative expenses	98,500						79,920
Total	$1,098,700						$733,200