Gevent is organizing a musical event and has worked out flexible budget based on spectator number. The music group wage is 20’000 plus 15% of the total income. the hall rental fee is 50’000 plus 5% of the income. security staff charges( 1 officer/ 200 spectators)is 80.other fix expenses amount to 28’000 and the ticket price is 32.
Gevent has budgeted 4’000 sales on ticket.4’500 people attended and the total sales amount is 135’000 (student tickets and free invitations have been distributed). 25 security staff were deployed and publicizing the event cost 29’500
Required:
Calculate the total variance, the flexible budget variances and the sales activity variance.
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