For the Year Ended December 31 Actual number of productions.. 7 Actual number of performances. 168 Actors and directors wages. $341,800 Stagehands wages 49,700 Ticket booth personnel and ushers wages..... 25,900 Scenery, costumes, and props.. 130,600 Theater hall rent. . . 78,000 Printed programs. 38,300 Publicity... 15,100 Administrative expenses. Total.. 47,500 $726,900 Required: 1. Use Exhibit 9-11 as your guide, prepare a flexible budget performance report for the year that shows both spending variances and activity variances. 2. If you were on the board of directors of the theater, would you be pleased with how well costs were controlled during the year? Why, or why not? 3. The cost formulas provide figures for the average cost per production and average cost per performance. How accurate do you think these figures would be for predicting the cost of a new production or of an additional performance of a particular production?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
For the Year Ended December 31
Actual number of productions..
7
Actual number of performances.
168
Actors and directors wages.
$341,800
Stagehands wages
49,700
Ticket booth personnel and ushers wages.....
25,900
Scenery, costumes, and props..
130,600
Theater hall rent. . .
78,000
Printed programs.
38,300
Publicity...
15,100
Administrative expenses.
Total..
47,500
$726,900
Required:
1. Use Exhibit 9-11 as your guide, prepare a flexible budget performance report for the year that shows
both spending variances and activity variances.
2. If you were on the board of directors of the theater, would you be pleased with how well costs were
controlled during the year? Why, or why not?
3. The cost formulas provide figures for the average cost per production and average cost per
performance. How accurate do you think these figures would be for predicting the cost of a new
production or of an additional performance of a particular production?
Transcribed Image Text:For the Year Ended December 31 Actual number of productions.. 7 Actual number of performances. 168 Actors and directors wages. $341,800 Stagehands wages 49,700 Ticket booth personnel and ushers wages..... 25,900 Scenery, costumes, and props.. 130,600 Theater hall rent. . . 78,000 Printed programs. 38,300 Publicity... 15,100 Administrative expenses. Total.. 47,500 $726,900 Required: 1. Use Exhibit 9-11 as your guide, prepare a flexible budget performance report for the year that shows both spending variances and activity variances. 2. If you were on the board of directors of the theater, would you be pleased with how well costs were controlled during the year? Why, or why not? 3. The cost formulas provide figures for the average cost per production and average cost per performance. How accurate do you think these figures would be for predicting the cost of a new production or of an additional performance of a particular production?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education