Question
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
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 $ 244,080 Stagehands wages 60,480 Ticket booth personnel and ushers wages 44,280 Scenery, costumes, and props 109,560 Theater hall rent 82,080 Printed programs 55,080 Publicity 13,560 Administrative expenses 71,280 Total $ 680,400
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 $ 413,700 Stagehands wages 92,600 Ticket booth personnel and ushers wages 71,400 Scenery, costumes, and props 131,900 Theater hall rent 118,300 Printed programs 78,600 Publicity 17,700 Administrative expenses 86,500 Total $ 1,010,700
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 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 $ 244,080 Stagehands wages 60,480 Ticket booth personnel and ushers wages 44,280 Scenery, costumes, and props 109,560 Theater hall rent 82,080 Printed programs 55,080 Publicity 13,560 Administrative expenses 71,280 Total $ 680,400
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 $ 413,700 Stagehands wages 92,600 Ticket booth personnel and ushers wages 71,400 Scenery, costumes, and props 131,900 Theater hall rent 118,300 Printed programs 78,600 Publicity 17,700 Administrative expenses 86,500 Total $ 1,010,700
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 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 | $ 244,080 |
| Stagehands wages | 60,480 |
| Ticket booth personnel and ushers wages | 44,280 |
| Scenery, costumes, and props | 109,560 |
| Theater hall rent | 82,080 |
| Printed programs | 55,080 |
| Publicity | 13,560 |
| Administrative expenses | 71,280 |
| Total | $ 680,400 |
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 | $ 413,700 |
| Stagehands wages | 92,600 |
| Ticket booth personnel and ushers wages | 71,400 |
| Scenery, costumes, and props | 131,900 |
| Theater hall rent | 118,300 |
| Printed programs | 78,600 |
| Publicity | 17,700 |
| Administrative expenses | 86,500 |
| Total | $ 1,010,700 |
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 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 | $ 244,080 |
| Stagehands wages | 60,480 |
| Ticket booth personnel and ushers wages | 44,280 |
| Scenery, costumes, and props | 109,560 |
| Theater hall rent | 82,080 |
| Printed programs | 55,080 |
| Publicity | 13,560 |
| Administrative expenses | 71,280 |
| Total | $ 680,400 |
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 | $ 413,700 |
| Stagehands wages | 92,600 |
| Ticket booth personnel and ushers wages | 71,400 |
| Scenery, costumes, and props | 131,900 |
| Theater hall rent | 118,300 |
| Printed programs | 78,600 |
| Publicity | 17,700 |
| Administrative expenses | 86,500 |
| Total | $ 1,010,700 |
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.)
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Fundamentals of Financial Accounting
Authors: Fred Phillips, Robert Libby, Patricia Libby
5th edition
978-0078025914
