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 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 108 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 $ 241,920 58,320 42,120 109,440 79,920 52.920 13,440 51.840 $ 649,920 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 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 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 theater's 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 appear below:

can you please answer tmrequired one and two and show me the explanations. I greatly appreciate your help. have a great day

Answer 1

Flexible Budget Number of Production Number of Performance 168 $ $ Actors' and Director wages Stagehands' Wages Ticket booth Personal and Ushers' Wages Scenery, Costume and Props Theater hall rent Printed Program Publicity Administrative Expenses Total Expenses 376,320 90,720 65,520 127,680 124,320 82,320 15,680 56,016 938,576 $ Working Actors' and Director wages Stagehands' Wages Ticket booth Personal and Ushers' Wages Scenery, Costume and Props Theater hall rent Printed Program Publicity Administrative Expenses (241920/108)*168 Divide by budgeted performance and multiply by actual performance (58320/108) *168 Divide by budgeted performance and multiply by actual performance (42120/108) *168 Divide by budgeted performance and multiply by actual performance (109440/6)*7 Divide by budgeted production and multiply by actual production (79920/108) *168 Divide by budgeted performance and multiply by actual performance (52920/108)*168 Divide by budgeted performance and multiply by actual performance (13440/6)*7 Divide by budgeted production and multiply by actual production (51840*75%)+(((51840*15%)/6)*7)+(((51840*10%)/108) *168) Administrative expense is 75% is Fixed, 15 % on production and 10% on performance The Little Theatre Spending Variances Flexible Budget Number of Production Number of Performance Actual Results 7 168 168 $ 31,780 Actors' and Director wages Stagehands' Wages Ticket booth Personal and Ushers' Wages Scenery, Costume and Props Theater hall rent Printed Program Publicity Administrative Expenses Total Expenses 408,100 89,300 67,900 131,800 115,200 75,500 17,500 57,100 962,400 $ $ $ $ $ $ $ $ $ 1,420 2,380 4,120 9,120 6,820 1,820 1,084 23,824 CCCC 376,320 90,720 65,520 127,680 124,320 82,320 15,680 56,016 938,576 $ $ $ $ Spending Variance = Actual Results - Flexible Budget Spending Variance are favorable when actual expense is less than budgeted expenses. Spending Variance are Unfavorable when actual expense is more than budgeted expenses.