Question

13 The Little Theatre is a nonprofit organization devoted to staging plays for children. The theater hos o 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. Sinne 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 Scenery, costumes, and props Theater hall rent Printed programs Publicity Administrative expenses Total $216,00 32,400 16,200 108,000 54,000 27,000 12,000 43,200 $508, see

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Solution: Working note: Little Theatre Flexible Budget For the month ending Dec.31 Step.01: Particulars Actors'/directors' wages (216000/108) *168 Stagehands wages (32400/108) *168 Ticket Booth personnel and ushers wages (16200/108)*168 Scenery, costumes, and props (108000/6)*7 Theatre hall rent (54000/108) *168 Printed programs (27000/108) *168 Publicity (12000/6)*7 Admin expenses (refer working note) Total Admin Expense: 75% of 43200 - Fix 15% of 43200 - Productions 10% of 43200 - Performance Total Flexi. $ 32,400 $ 32,400 $ 6,480 $ 7,560 $ 4,320 $ 6,720 $ 43,200 $ 46,680 Flexi Budget $ 3,36,000 $ 50,400 $ 25,200 $ 1,26,000 $ 84,000 $ 42,000 14,000 46,680 724280 Answer: Step.02: Little Theatre Flexible Budget Performance Report For the month ending Dec.31 Particulars Actors/directors' wages (216000/108)*168 Stagehands wages (32400/108) *168 Ticket Booth personnel and ushers wages (16200|| Scenery, costumes, and props (108000/6)*7 Theatre hall rent (54000/108) *168 Printed programs (27000/108)*168 Publicity Admin expenses (refer working note) Total Spending Variance Actual Variance F/U 341800 $ 5,800 49700 $ 700 259000 $ 700 130600 $ 4,600 78000 $ 6,000 38300$ 3,700 15100 $ 1,100 47500 $ 820 726900 $ 2,620 CCTTCCTC Activitiy Variance Flexi Budget Variance F/U 336000 120000 50400 $ 18,000 25200 $ 9,000 126000 $ 18,000 84000 $ 30,000 42000 $ 15,000 14000 $ 2,000 46680$ 3,480 724280 215480 U CCCCC Budget 216000 32400 16200 108000 54000 27000 12000 43200 508800