BUAD 365 Cost Accounting Case Assignment - Fall 2021 Clear Waters Containers Ltd. 1 Refer to the case, Clear Waters Containers Ltd. (from the text. Canadian Managerial Accounting Cases, Carty & Wick, John Wiley & Sons Canada, Ltd., Copyright 2014) Required (Note: these instructions replace the "Required provided in the case) As the company's new controller, Patti tee, prepare a memo to your boss, James Virani, president of Clear Water Containers, addressing his concerns related to the initial budget variance report you prepared (Exhibit 1 in the case) Your memo should containing the following: 1. A brief introduction identifying the key issues to be addressed. 2. An explanation of "Flexible Budget Variance Analysis and why it is a useful management tool. Be specific by relating it to the business-Clear Water Containers. 3. Quantitative Analysis (presented as separate exhibits to the written memo); Create a Flexible Budget Report (similar to Exhibit 1 but with the following column headings: Actual Results Flexible Budget Variances, Flexible Budget, Sales Volume Variances, and Static Budget 6. Prepare a fleable-budget variance analysis for direct materials, direct labour, variable manufacturing overhead, and fixed manufacturing overhead. In your analysis, break each flexible budget variance into its two components (ie direct materials price variance, direct materials usage variance), and clearly label each variance as favourable (F) or unfavourable (U). There should be eight variances in total analyzed. 4. Qualitative Analysis (in the written body of your memo) For each of the eight variances, identify: The relative level of concern (very low, low, median, high, very high) ii. The likely manager, or managers, responsible (be specific, refer to the organization chart in Exhibits of the case) I. Possible root causes for the variance - as many as possible 5. Conclusion-Using the concept of management by exception', which area(s) of the business do you recommend Mr. Virani focus on first in order to improve the overall financial performance? Your recommendation should specifically refer to the variance analysis completed *Note: The term "Static Budget is the same as the term "Master Budget used in this course BUAD 365 - Case Assignment Report Format The format of your professional memo should be as follows: 1. Proper memo header 2. Brief introduction paragraph 3. Explanation of "Flexible Budget Variance Analysis" (one paragraph) 4. Qualitative analysis - create a table using the format similar to: Variance Variance Concern Manager Responsible Type Amount (and why) Possible Root Causes Level 5. Conclusion (one paragraph) 6. Quantitative Analysis (separate Exhibits to the written memo) Flexible Budget Report (one page) II. Flexible Budget Variance Analysis Report (no limit on pages) The quantitative analysis should be completed using Excel, and the copied into your memo document as Exhibits. Students are required to submit their Excel file to support the information provided in the Exhibits. The written memo (not including Exhibits) is not to exceed three pages Students will be rewarded for conciseness and clarity! Due Date - This assignment is due on Sunday, November 28 at 11:55 pm via the appropriate Moodle drop box in the 'Case Assignment' foider. Students are required to submit two documents 1. Memo document, including Exhibits. 2. Excel file showing work completed on the Exhibits, including calculations See the marking rubric on the following page. BUAD 365 Cost Accounting Case Assignment - Fall 2021 Clear Waters Containers Ltd. 1 Refer to the case, Clear Waters Containers Ltd. (from the text. Canadian Managerial Accounting Cases, Carty & Wick, John Wiley & Sons Canada, Ltd., Copyright 2014) Required (Note: these instructions replace the "Required provided in the case) As the company's new controller, Patti tee, prepare a memo to your boss, James Virani, president of Clear Water Containers, addressing his concerns related to the initial budget variance report you prepared (Exhibit 1 in the case) Your memo should containing the following: 1. A brief introduction identifying the key issues to be addressed. 2. An explanation of "Flexible Budget Variance Analysis and why it is a useful management tool. Be specific by relating it to the business-Clear Water Containers. 3. Quantitative Analysis (presented as separate exhibits to the written memo); Create a Flexible Budget Report (similar to Exhibit 1 but with the following column headings: Actual Results Flexible Budget Variances, Flexible Budget, Sales Volume Variances, and Static Budget 6. Prepare a fleable-budget variance analysis for direct materials, direct labour, variable manufacturing overhead, and fixed manufacturing overhead. In your analysis, break each flexible budget variance into its two components (ie direct materials price variance, direct materials usage variance), and clearly label each variance as favourable (F) or unfavourable (U). There should be eight variances in total analyzed. 4. Qualitative Analysis (in the written body of your memo) For each of the eight variances, identify: The relative level of concern (very low, low, median, high, very high) ii. The likely manager, or managers, responsible (be specific, refer to the organization chart in Exhibits of the case) I. Possible root causes for the variance - as many as possible 5. Conclusion-Using the concept of management by exception', which area(s) of the business do you recommend Mr. Virani focus on first in order to improve the overall financial performance? Your recommendation should specifically refer to the variance analysis completed *Note: The term "Static Budget is the same as the term "Master Budget used in this course BUAD 365 - Case Assignment Report Format The format of your professional memo should be as follows: 1. Proper memo header 2. Brief introduction paragraph 3. Explanation of "Flexible Budget Variance Analysis" (one paragraph) 4. Qualitative analysis - create a table using the format similar to: Variance Variance Concern Manager Responsible Type Amount (and why) Possible Root Causes Level 5. Conclusion (one paragraph) 6. Quantitative Analysis (separate Exhibits to the written memo) Flexible Budget Report (one page) II. Flexible Budget Variance Analysis Report (no limit on pages) The quantitative analysis should be completed using Excel, and the copied into your memo document as Exhibits. Students are required to submit their Excel file to support the information provided in the Exhibits. The written memo (not including Exhibits) is not to exceed three pages Students will be rewarded for conciseness and clarity! Due Date - This assignment is due on Sunday, November 28 at 11:55 pm via the appropriate Moodle drop box in the 'Case Assignment' foider. Students are required to submit two documents 1. Memo document, including Exhibits. 2. Excel file showing work completed on the Exhibits, including calculations See the marking rubric on the following page