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    Preparing a Flexible Budget

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    Problem is attached as word document. I'm having problems preparing flexible budget.
    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 115 performances. For example, one of the productions was Peter Rabbit, which had a six-week run with three performances on each weekend.

    The Little Theatre
    Costs from the Planning Budget
    For the Year Ended December 31
    Budgeted number of productions $ 10
    Budgeted number of performances 115
    Actors' and directors' wages 126,500
    Stagehands' wages 18,400
    Ticket booth personnel and ushers' wages 16,445
    Scenery, costumes, and props 175,000
    Theater hall rent 42,550
    Printed programs 23,000
    Publicity 20,000
    Administrative expenses 42,200
    ________________________________________
    Total $ 464,095
    ________________________________________________________________________________
    ________________________________________

    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, 13% depend on the number of productions staged, and the remaining 14% 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 153 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:

    The Little Theatre
    Actual Costs
    For the Year Ended December 31
    Actual number of productions 11
    Actual number of performances 153
    Actors' and directors' wages $342,700
    Stagehands' wages 48,500
    Ticket booth personnel and ushers' wages 26,300
    Scenery, costumes, and props 131,200
    Theater hall rent 78,000
    Printed programs 30,820
    Publicity 22,500
    Administrative expenses 48,700
    ________________________________________
    Total $728,720

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

    The Little Theatre
    Flexible Budget
    For the Year Ended December 31
    Actors' and directors' wages
    Stagehands' wages
    Ticket booth personnel and ushers' wages
    Scenery, costumes, and props
    Theater hall rent
    Printed programs
    Publicity
    Administrative expenses
    ________________________________________
    Total expense

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    https://brainmass.com/business/budgets/preparing-flexible-budget-311205

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