The Little Theatre is a nonprofit organization devoted to staging plays for chil
ID: 2520239 • Letter: T
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The Little Theatre is a nonprofit organization devoted to staging plays for children. The Theatre has a very small full-time professional administrative staft. 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 sbx different productions with a total of 60 performances. For example, one of the productions was Peter Rabbi, which had a six-week run with three performances on each weekend. The Litle Theatre Costs from the Planning Budget For the Year Ended December 31 Budgeted number of Budgeted number of Actors' and directors wages $ Stagehands' wages Ticket booth personnel and 17,400 Scenery, costumes, and props Theatre hall rent Printed programs Publioity productions 60 162,000 ushers' wages 34,800 46,200 15,300 10,400 46,000 Total Some of the costs vary with the number of productions, some with the number of performances, and some are fxed and depend on neither the number of productions nor the number of performances. The oosts of scenery, costumes, props, and publicity vary with the number of productions It doesnt make any diference how many times Peter Rabbit is performed, the s the same. Likewise, the cost of publicizing a play wa posters and radio commeecials is the same whether there are 10, 20, or 30 performances of the play. On the other hand, the wages of the actons, directors, stagehands, ticket booth personnel, and ushers vary with the The greater the number of performances, the higher the wage costs will be. Similanty, the costs of renting the hall and number of perfonmanoes Administrative expenses are more diffiouit to pin down, but the best estimate is that approximately 75% ofthe badgeted costs are fixed, 10% depend on nroer of productions staged.d 2e renairing 15% depend on the cost of the printing he programs will vary with the number of performances Aher the beginning of the year, the board of directors of the Theatre authorized expanding the Theatre's program to three productions and a sotal of 64 performances Not surprisingly, actual costs were considerably higher han the costs from the planning budget. (Grants from donors and scket sales were ilso correspondingly higher, but are not shown hane.) Dta conceming the actual costs appear below The Litte TheatreExplanation / Answer
Budgteted Cost Actual Cost Flexible Budget Actual number of productions 4 3 3 Actual number of performances 60 64 64 Actors & Directors wages $ 162,000.00 $ 168,000.00 $ 172,800.00 Stagehands wages $ 28,200.00 $ 29,800.00 $ 30,080.00 Tickets Booth personnel & ushers wages $ 17,400.00 $ 18,900.00 $ 18,560.00 Scenery, costumes & props $ 34,800.00 $ 31,100.00 $ 26,100.00 Theatre hall rent $ 46,200.00 $ 50,800.00 $ 49,280.00 Printed programs $ 15,300.00 $ 15,750.00 $ 16,320.00 Publicity $ 10,400.00 $ 9,400.00 $ 7,800.00 Administrative expenses $ 46,000.00 $ 44,450.00 $ 45,310.00 Total $ 360,300.00 $ 368,200.00 $ 366,250.00 Administrative expenses: Budget Budget Flexible Budget $ 46,000.00 75% Fixed $ 34,500.00 $ 34,500.00 10%: Depends on number of productions: per production cost $ 1,150.00 $ 3,450.00 15%: Depends on number of performances: per performance cost $ 115.00 $ 7,360.00 Total Flexible Budget $ 45,310.00 Variance Calculation Spending Variance=Flexible Budget-Actual Cost Comments Actors & Directors wages $ 4,800.00 F Stagehands wages $ 280.00 F Tickets Booth personnel & ushers wages $ (340.00) U Scenery, costumes & props $ (5,000.00) U Theatre hall rent $ (1,520.00) U Printed programs $ 570.00 F Publicity $ (1,600.00) U Administrative expenses $ 860.00 F Total $ (1,950.00) U
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