6 Budgeted number of performances 108 Actors and directors wages $ 233,280 Stagehands wages 49,680 Ticket booth personnel and ushers wages 33,480 Scenery, costumes, and props 108,960 Theater hall rent 71,280 Printed programs 44,280 Publicity 12,960 Administrative expenses 60,480 Total $ 614,400 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 were as follows: The Little Theatre Actual Costs For the Year Ended December 31 Actual number of productions 7 Actual number of performances 168 Actors and directors wages $ 385,700 Stagehands wages 76,100 Ticket booth personnel and ushers wages 53,900 Scenery, costumes, and props 131,400 Theater hall rent 102,800 Printed programs 63,100 Publicity 16,700 Administrative expenses 71,500 Total $ 901,200 Required: 1. Prepare a flexible budget performance report for the year that shows both spending variances and activity variances