Stevens Center isa nonprofit organization devoted its staging plays for children.The theater has a very small
full-time professionaladministrative staff. Through a special arrangement with theactors' union, actors
and directors rehearse withoutpay and are paid only for actual performances.
The costs from the currentyear's planning budget appear below. Steven Center had tentativelyplanned to put
on six different productionswith a total of 108 performances. For example, one of theproductions was The Lion King,
which has a six-week run withthree performances on each weekend.
Costs from the PlanningBudget
For the Year Ended December31
Budgeted number of productions 6
Budgeted number of performances 108
Actors' and directors' wages $215,000
Stagehands' wages 31,900
Ticket booth personnel and ushers'wages 16,400
Scenery, costumes, and props 107,900
Theater hall rent 53,000
Printed programs 26,800
Publicity 12,200
Administrative expense 44,200
Total $507,400
Some of the costs vary withthe number of productions, some with the number of performances,and
some are fixed and depend onneither the number of productions nor the number ofperformances.
The costs of scenery,costumes, props, and publicity vary with the number ofproductions.
It doesn't make anydifferences how many times The Lion King is performed, the cost ofthe
scenery is the same. Likewise,the cost of publicizing a play with posters and radio commericalsis the
same whether there are 10,20or 30 performances of the play. On the other hand, the wagesof
the actors, directors,stagehands, ticket booth personnel, and ushers vary with the numberof
perofrmances. The greater thenumber of performances, the higher the wage costs will be.Similarily,
the costs of renting the halland printing the programs will vary with the number ofperformances.
Administrative expenses aremore difficult to pin down, but the best estimate is thatapproximately
75% of the budgeted costs arefixed, 15% depend on the number of productions staged, and the
remaining 10% depend on thenumber of performances.
After the beginning of theyear, the board of directors of the theater authorized expandingthe
theater's program to sevenproductions and a total of 168 performances. Not surprisingly,actual
costs were considerably higherthan the costs from the planning budget. (Grants from donors
and ticket sales were alsocorrespondingly higher, but are not shown here.) Data concerningthe
actual costs appear below:
Costs from the PlanningBudget
For the Year Ended December31
Actual number of productions 7
Actual number of performances 168
Actors' and directors' wages $341,600
Stagehands' wages 49,500.00
Ticket booth personnel and ushers'wages 25,800.00
Scenery, costumes, and props 130,700.00
Theater hall rent 78,100.00
Printed programs 38,400.00
Publicity 15,200.00
Administrative expense 47,100.00
Total $726,400
1. Prepare a flexible budgetfor the Stevens Center based on the actual activity of theyear.

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Jean Keeling
Jean KeelingLv2
28 Sep 2019

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