The Munchkin Theater is a nonprofit organization devoted to staging plays for children. The theater has a very small fulltime professional administrative staff. Through a special arrangement with the actors' union, actors and directors rehears 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 evaluatin 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. Afte interviewing various people afflliated 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: 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: Calculate the amount of the activity variances in column I using the following five-step process (Do not worry about labeling the variances as U or F at this point): Note: Negative amount should be indicated by a minus sign. a. Create a formula for the actors' and directors' wages activity variance in cell N10. What is the amount of the activity variance for actors' and directors' wages? b. Copy your formula from cell N10 into cells N11 through N17. What is the amount of the activity variance for administrative expenses (cell N17 )? c. Use the AutoSum feature to calculate the total activity variance in cell N18. What is the total activity variance? d. Using the Absolute Value function, input the absolute values of the amounts in cells N10 through N18 into cells 110 through I18. e. Hide column N. 9. Using Conditional Formatting, highlight all spending variances that vary from the flexible budget by an absolute value of 5% or more. (Hint Within the conditional formatting drop down menu look for the appropriate formula in the "More rules" section. Also, make sure your formula does not include any absolute references.) Which spending variances deviate from the flexible budget by at least 5% ? Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer or double click the box with the question mark to empty the box for a wrong.answer. Any boxes left with a question mark will be automatically graded as incorrect. Actors' and directors' wages Stagehands' wages Ticket booth personnel and ushers' wages Scenery, costumes, and props Theater hall rent Printed programs Publicity Adrninistrative expenses Using Conditional Formatting, highlight all spending variances that varied by an absolute value of $1,000 or more. How many of the spending variances are highlighted? Calculate the amount of the spending variances in column F using the following five-step process (Do not worry about labeling the variances as U or F at this point): Note: Negative amount should be indicated by a minus sign. a. Create a formula for the actors' and directors' wages spending variance in cell M10. What is the amount of the spending variance for actors' and directors' wages? b. Copy your formula from cell M10 into cells M11 through M17. What is the amount of the spending variance for administrative expenses (cell M17)? c. Use the AutoSum feature to calculate the total spending variance in cell M18. What is the total spending variance? d. Using the Absolute Value function, input the absolute values of the amounts in cells M10 through M18 into cells F10 through F18. e. Hide column M. The activity variances in column 1 are influenced by two cost drivers-number of productions and number of performances. Therefore: a. In cell 121 create a formula that quantifies the portion of the overall activity variance that is caused solely by the fact that The Munchkin Theatre actually put on four productions instead of the planned number of five productions. What is the amount in cell 121 ? b. In cell 122 create a formula that quantifies the portion of the overall activity variance that is caused solely by the fact that The Munchkin Theatre actually put on 64 performances instead of the planned number of 60 performances. What is the amount in cell 122? c. Create IF-THEN statements in cells J21 and J22 that properly label your variances in cells 121 and 122 as favorable ( F ) or unfavorable (U)