The Little Theatre is a nonprofit organization devoted to staging plays for chil

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 costs from the current year's planning budget appear below. The Little Theatre had tentatively planned to put on ten different productions with a total of 107 performances. For example, one of the productions was Peter Rabbit, which had a six-week run with three performances on each weekend.

       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 pin down, but the best estimate is that approximately 73% of the budgeted costs are fixed, 11% depend on the number of productions staged, and the remaining 16% 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 eleven productions and a total of 164 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 on the following page:

Prepare a flexible budget for The Little Theatre based on the actual activity of the year. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.)

Prepare a flexible budget performance report for the year that shows both activity variances and spending variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answers to the nearest dollar amount. Input all amounts as positive values. Omit the "$" sign in your response.)

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 costs from the current year's planning budget appear below. The Little Theatre had tentatively planned to put on ten different productions with a total of 107 performances. For example, one of the productions was Peter Rabbit, which had a six-week run with three performances on each weekend.

Explanation / Answer

The cost formulas for The Little Theatre appear below, where P is the number of productions and R is the number of performances:
Actors

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