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: Per Production Fixed Cost Formulas Per Performance $2,400 $ 450 $ 180 Actors and directors' wages Stagehands' wages Ticket booth personnel and ushers' wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses $8,600 $ $ 750 175 $2,600 $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 Stagehands' wages Ticket booth personal and ushers' wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses Total $159,200 28,600 12,300 39,300 49,600 10,950 12,000 41,650 $353,600 The Munchkin Theater Flexible Budget Performance Report For the Year Ended December 31 Actual Results Spending Variances Flexible Budget 4 Activity Variances Number of productions (91) Number of performances (92) Planning Budget 5 60 64 64 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 Cost Formulas Per Per Production Performance $ 2,400 S 450 $ 180 $ 8,600 $ 750 S 175 S 2,600 S 1.296s 772 S S 12.496 S 4.027 S Fixed $ 159,200 S 28.600 $ 12,300 S 39,300 S 49,600 S 10.950 $ 12,000 32.400 ... 41.650 32.400 S353.6.00 S S $ S S S S $ $ S 88888888 -00 Activity Variances: By Cost Driver Portion due to number of productions Portion due to number of performances 1-a. 1-b. Total amount of actors' and directors' wages Total amount of administrative expenses Total amount of expenses 1-c. 2-a. 2-b. Total amount of actors' and directors' wages Total amount of administrative expenses Total amount of all expenses 2-c. 3-a. 3-b. Amount of the static budget variance for actors' and directors' wages Amount of the static budget variance for administrative expenses Total static budget variance 3-c. 4-a. What label appears for this variance, For U? What label appears for the administrative expense static budget variance, F or U? 4-b. 6-a. What label appears for this variance, For U? What label appears for the administrative expense sales volume variance, F or U? 6-b. en 5 Renz 7-a. The portion of the overall sales volume variance due to productions The portion of the overall sales volume variance due to performances 7-b. Number of static budget variances highlighted