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. The Little Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of productions Budgeted number of performances 6 108 Actors and directors wages Stagehands wages Ticket booth personnel and ushers wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Adsinistrative expenses Total $ 241,920 58,320 42,120 109,400 79,920 52,920 13,440 69, 120 $ 667,200 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 perfomances. The costs of scenery, costumes, props, and publicity vary 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 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 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 analyze, but the best estimate is that approximately 75% of the budgeted costs are fixed, 15% depend on the number of productions staged and 1 O i ere to search 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 os positive values.) The Little Theatre Flexible Budget Performance Report For the Year Ended December 31 Actual Revenue and Spending Flexible Results Variances Budget 7 7 168 168 Activity Variances Planning Budget 6 108 Number of productions Number of performances $ U U U U 0 Actors' and directors' wages Stagehands wagos Ticket booth personnel and ushers' wages Scenery, costumes, and props Theatre hall rent Printed programs Publicity Administrative expenses 408,100 89 300 67.900 131.800 115,200 75,500 17,500 83,500 988 800 U $ 241.920 58,320 42,120 109.440 79.920 52.920 13.440 69,120 S 667 200 U U U U U $ U U Total
