2008 Actual 12,000,000 3,344,000 1,335,000 7,224,500 6.876.000 30,779,500 250,000 150,000 125,000 120,000 258,000 2,653,350 3,304,100 6,500,000 1,175,600 5,236,500 12,000,000 31,772,550 Table 1: Audited Financial and Operating Statement, 2008 (in ) Revenue 2008 Budget Museum Admissions 10,000,000 Special exhibit admissions 3,000,000 Annual memberships 1,560,000 Donations 7,500,000 Government grants 2.000.000 Total 29,060,000 Expenses Executive Director (salaried) 250,000 Director of Development (salaried) 150,000 Head Curator (salaried) 125,000 Administrative Staff (salaried) 120,000 Fringe for salaried employee @40% of salary 258,000 Curatorial Staff (paid hourly) 2,080,000 Security Guards (paid hourly) 2,028,000 Insurance 4,750,000 Maintenance 1,150,000 Utilities 3,450,000 Mortgage 12,000,000 Total 26,361,000 Total Surplus /(Deficit) 2,699,000 Operating Data Operations Museum admissions (# of visitors) 800,000 Special exhibit admissions (# of visitors) 150,000 Annual memberships sold (# sold) 20,800 Pieces of art work on display. Regular Exhibits 200 Special Exhibits 100 Total pieces on display 300 Total hours worked by curators Regular Exhibits 72,000 Special Exhibits 32.000 Total curatorial hours 104,000 Total hours worked by security guards Regular Exhibits 100,000 Special Exhibits 35.200 Total security guard hours 135,200 ( 993,050) 1,000,000 167,200 17,800 210 105 315 76,681 62.969 139,650 107,101 71.449 178,600 HKS Case Program 2 of 6 Case Number 20340 QUESTION 1 5. Prepare the total revenue, expense and surplus/deficit variances using the template, and indicate whether each of the variances is favorable or unfavorable. Variance F/UF Revenue Actual 30,779,500 31,772,550 Budgeted 29,060,000 26,361,000 2,699,000 Expense Surplus/Deficit -993,050 b. Calculate the price, quantity, and total variance for "Museum Admissions revenue (per visitor). Actual Price Budgeted Price Quantity Variance F/UF Price variance Actual Quantity Price Variance F/UF Budgeted Quantity Quantity variance Actual Budgeted Variance F/UF Museum admissions variance Calculate the price, quantity, and total variance for "Curatorial Staff" expense (per hour). Actual Price Budgeted Price Quantity Variance F/UF Price variance Actual Quantity Budgeted Quantity Price Variance F/UF Quantity variance Actual Budgeted Variance F/UF Curatorial Staff variance HKS Case Program 3 of 6 Case Number 20340