Use Exhibit 9–11 as your guide, prepare a flexible budget performance report for the year that shows both spending variances and activity variances. 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? 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?