Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1-Please describe the circumstances of the following case study and 2- recommend a course of action. 3- Explain your approach to the problem, 4-perform relevant

1-Please describe the circumstances of the following case study and

2- recommend a course of action.

3- Explain your approach to the problem,

4-perform relevant per unit calculations and analysis,

5-and formulate a recommendation.

6-Ensure your work and recommendation are thoroughly supported.

Case Study:

Papaya Partners is a distributor of papayas. They purchase papayas from individual growers and package them in 10-pound cartons for delivery to their various customers, generally supermarkets. Last month, they budgeted to sell $500,000 worth of cartons at a price of $25 each. Actual sales met a budget of $500,000 at $25 per carton.

Management has received cost information based on actual performance and needs to understand the drivers of the overall variance from the budget. They have asked you, as an analyst in their management accounting department, to calculate and explain the variances. The following data has been provided:

BudgetCost of fruit @ 10 pounds per carton$200,000Cost of packaging @ 1 pound per carton$10,000Labor costs @ .5 hourse per carton$90,000Total Cost$300,000ActualCost of fruit @ 10 pounds per carton$244,200Cost of packaging @ .55 pound per carton$11,000Labor costs @ .75 hourse per carton$150,000Total Cost$405,200Unfavorable variance$105,200.00

Specifically, management needs to know the:

  • 7- Standard cost per unit (carton)
  • 8- Actual cost per unit
  • 9- Direct materials price variances
  • 10-Direct materials usage variances
  • 11-Direct labor rate variance
  • 12-Direct labor efficiency variance

In addition, they would like to understand

13- how the variances are calculated and what caused them.

14-They would also like a recommendation on what might be done to improve the variances.

For this assignment,

15-compute all required amounts and explain

16- how the computations were performed.

17-Describe whom you would work with to determine the causes of the variances and hypothesize on

18 What caused the variances. Based on your analysis,

19-recommend actions that management could take to improve the variances.

  • please please answer each of the 19 questions separately and put the number for each and every answer, please

the case study was written in bold please check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Peter Howells, Keith Bain

5th Edition

0273709194, 9780273709190

More Books

Students also viewed these Accounting questions