a.
Prepare the total revenue, expense and surplus/deficit variances using the template, indicate
whether each of the variances is favorable or unfavorable
Actual Budgeted Variance F/UF
Revenue 30,779,500 29,060,000 1,719,500 F
Expense 31,772,550 26,361,000 5,411,550 UF
Surplus/Deficit -993,050 2,699,000 -3,692,050 UF
b.Calculate the price, quantity, and total variance for "Museum Admissions" revenue (per visitor)
Actual Price Budgeted Price Quantity Variance F/UF
Price variance 12 12.5 1,000,000 (500,000) UF
Actual Quantity Budgeted Quantity Price Variance F/UF
Quantity variance 1,000,000 800,000 12.5 2,500,000 F
Actual Budgeted Variance F/UF
Museum admissions
variance 12,000,000 10,000,000 2,000,000 F
c. Calculate the prices, quantity, and total variance for "Curatorial Staff" expense (per hour)
Actual Price Budgeted Price Quantity Variance F/UF
Price variance 19 20 139,650 -139,650 F
Actual Quantity Budgeted Quantity Price Variance F/UF
Quantity variance 139,650 104,000 20 713,000 UF
Actual Budgeted Variance F/UF
Curatorial Staff
variance 2,653,350 2,080,000 573,350 UF
e.
Actual visitors price 2008
reduced 300,000 5 1,500,000
regular 700,000 15 10,500,000
total 1,000,000 12,000,000
Estimate visitors price 2008
reduced 270,000 10 2,700,000
regular 700,000 15 10,500,000
total 970,000 13,200,000
increase(decrease) 1,200,000
a. Calculate the activity cost pool amounts and complete the table below.
(Use 2008 Actuals from Table 1.)
Curatorial
Regular Exhibits Special Exhibits Activities
Executive Director & fringe 122,500 $ 105,000 $ 70,000 $
Director of Development & fringe 115,500 $ 73,500 $ 10,500 $
Curatorial Director & fringe - $ - $ 175,000 $
Administrative Staff & fringe 58,800 $ 50,400 $ 33,600 $
Curatorial Staff - $ - $ 2,653,350 $
Security Guards - $ - $ - $
Insurance 3,250,000 $ 3,250,000 $ - $
Maintenace 787,652 $ 387,948 $ - $
Utilities 2,618,250 $ 2,618,250 $ - $
Mortgage 8,040,000 $ 3,960,000 $ - $
TOTAL 14,992,702 $ 10,445,098 $ 2,942,450 $
b. Circle the most appropriate cost driver for the Curatorial and Security activity cost pools. Then, complete the table below
Choose the best cost driver:
A. Number of visitors
B. Number of staff hours worked
C. Number of special exhibits
Activity cost pool Curatorial Activities Security Activities
Activity cost driver quantity 139,650 178,600
Activity cost driver rate 21.07 $ 18.99 $
c. Calculate the total cost of Regular Exhibits ans Special Exhibits
Regular Exhibits Special Exhibits Total
Directly allocated costs 14,992,702 $ 10,445,098 $ 25,437,800 $
Total hours worked by curators 76,681 62,969 139,650
Curatorial activites 1,615,682 $ 1,326,768 $ 2,942,450 $
Total hours worked by security guards 107,151 71,449 178,600
Security activities 2,035,209 $ 1,357,091 $ 3,392,300 $
Total costs 18,643,593 $ 13,128,957 $ 31,772,550 $
d. Jimenez knows that the total revenue (indicated in below table) attributable to Regular Exhibits is $20 385 250, while the
revenue attributable to special Exhibits is $10 394 250. Based on these figures and total costs that he calculated in parts 2 (c
Jimenez conclude about the financial performance of each program?
Regular Exhibits Special Exhibits
Revenue 20,385,250 $ 10,394,250 $
Total Costs (from 2c) 18,643,593 $ 13,128,957 $
Surplus/Deficit 1,741,657 $ (2,734,707) $
Security
Activities Total
52,500 $ 350,000 $
10,500 $ 210,000 $
- $ 175,000 $
25,200 $ 168,000 $
- $ 2,653,350 $
3,304,100 $ 3,304,100 $
- $ 6,500,000 $
- $ 1,175,600 $
- $ 5,236,500 $
- $ 12,000,000 $
3,392,300 $ 31,772,550 $
Then, complete the table below:
hours
per hour
hours
hours
xhibits is $20 385 250, while the total
s that he calculated in parts 2 (c), what can
