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The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small full- time professional administrative staff.
The Munchkin Theater 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 Munchkin Theater has asked for your help in preparing a Planning budget at the beginning of the year and evaluating actual expenses at the end of the year. The theater expects to put on five different productions with a total of 60 performances. For example, one of the productions is Peter Rabbit, which had been budgeted for five performances. After interviewing various people affiliated with the theater you have developed the following estimated cost formulas for each of the eight expenses that will be included in your Planning budget: Cost Formulas Per Production Per Performance Fixed Actors' and directors' wages $2,400 Stagehands' wages $ 450 Ticket booth personnel and ushers' wages $ 180 Scenery, costumes, and props $8,600 Theater hall rent $ 750 Printed programs $ 175 Publicity $2,600 Administrative expenses $1,296 $ 72 $32,400 By the end of the year, The Munchkin Theater actually put on four productions and a total of 64 performances. The actual expenses incurred during the year were as follows: Actors' and directors' wages $159,200 Stagehands' wages 28,600 Ticket booth personal and ushers' wages 12,300 Scenery, costumes, and props 39,300 Theater hall rent 49,600 Printed programs 10,950 Publicity Total 12,000 Administrative expenses 41,650 $353,600
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