The Cardinal Philharmonic presents a series of concerts throughout the year. Budgeted fixed costs total $450,000 for the concert season; variable costs are expected to average $6 per patron. The philharmonic uses flexible budgeting.
Required:
Required:
A. Prepare a flexible budget that shows the expected costs of 9,000, 9,500, and 10,000 patrons.
B. Construct the philharmonic's flexible budget formula.
C. Assume that 9,700 patrons attended concerts during the year just ended, and actual costs were: variable, $56,700; fixed, $457,500. Evaluate the philharmonic's financial performance by computing variances for variable costs and fixed costs.

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The Answer of The Cardinal Philharmonic presents a series of concerts throughout the year. Budgeted fixed costs total $450,000 for the concert season; variable costs are expected to average $6 per patron. The philharmonic uses flexible budgeting.
Required:
Required:
A. Prepare a flexible budget that shows the expected costs of 9,000, 9,500, and 10,000 patrons.
B. Construct the philharmonic's flexible budget formula.
C. Assume that 9,700 patrons attended concerts during the year just ended, and actual costs were: variable, $56,700; fixed, $457,500. Evaluate the philharmonic's financial performance by computing variances for variable costs and fixed costs.

The Cardinal Philharmonic Presents a Series of Concerts Throughout the Year