The Children’s Hour Theatre is a local nonprofit organization that stages plays for children while allowing individuals who aspire to work in theatre an opportunity to try the craft. The theatre has a small administrative staff and the directors and actors are paid a fee for each performance which includes rehearsals. The Children’s Hour Theatre has planned five different productions with a total of 90 performances for this season. One of the classics presented is Peter and the Wolf. The theatre receives grants from donors to cover shortfalls from the discounted ticket prices that it charges. Therefore, the theatre only budgets its costs for each season. Some of the costs vary with the number of productions, some with the number of performances, and some are fixed.
Fixed element Variable element Variable element
Per season Per Production Per Performance
Director & Actor wages $0 $0 $2,175
Stagehands wages $0 $0 $285
Ticket Booth & usher wages $0 $0 $120
Scenery, costumes & props $0 $20,500 $0
Theater hall rent $0 $0 $500
Printed programs $0 $0 $235
Publicity $2,500 $825 $0
Administrative
expenses
$14,000
$700
$100
During the season, the theatre increased its productions to 6
and the performances to 120. The theatre's actual costs for the
season are listed below:
The Children’s Hour Theatre
Actual Costs
2019 Season
Director & Actor wages $ 260,250
Stagehands wages 34,500
Ticket Booth & usher wages 14,800
Scenery, costumes & props 120,900
Theatre hall rent 60,000
Printed programs 28,060
Publicity 7,535
Administrative expenses 31,245
Total Expenses $ 557,290
Required:
Prepare a flexible budget performance report showing both the
company's activity variances and spending variances for the theatre
season. Label each variance as favorable (F) or unfavorable
(U).
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