I am really bad in calculations, and I would be very grateful if somebody can help me explaining also how to arrive to the right values.

I know it is a long answer, I do not expect an answer in a few minutes, you can get all the time of the world :)

Thank you in advance!

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:

Budget

Cost of fruit @ 10 pounds per carton

$200,000

Cost of packaging @ 1 pound per carton

$10,000

Labor costs @ .5 hours per carton

$90,000

Total Cost

$300,000

Actual

Cost of fruit @ 10 pounds per carton

$244,200

Cost of packaging @ .55 pound per carton

$11,000

Labor costs @ .75 hours per carton

$150,000

Total cost

$405,200

Unfavorable variance

$105,200.00

Specifically, management needs to know the:

Standard cost per unit (carton)

Actual cost per unit

Direct materials price variances

Direct materials usage variances

Direct labor rate variance

Direct labor efficiency variance

In addition, they would like to understand how the variances are calculated and what caused them. They would also like a recommendation on what might be done to improve the variances.