The City Symphony Orchestra Presents a Series of Concerts Throughout

question 16

Essay

The City Symphony Orchestra presents a series of concerts throughout the year. Budgeted fixed costs total $300,000 for the concert season; variable costs are expected to average $5 per patron. The orchestra uses flexible budgeting.
Required:
A. Prepare a flexible budget that shows the expected costs of 8,000, 8,500, and 9,000 patrons.
B. Construct the orchestra's flexible budget formula.
C. Assume that 8,700 patrons attended concerts during the year just ended, and actual costs were: variable, $42,000; fixed, $307,500. Evaluate the orchestra's financial performance by computing variances for variable costs and fixed costs.

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Definitions:

Phagocytosis

A cellular process where cells engulf and digest large particles or microorganisms, an important feature of the immune response.

Chemotaxis

The movement of an organism or cell toward or away from a chemical stimulus.

White Blood Cell

A type of immune cell that is vital in the body's defense against infection.

Injury Site

The location on the body where an injury has occurred.