Jack and Andrew Company manufactures two types of snack products; Taro Chips and Corn Chips. Both products are made in the same way but with different packaging and brands. The following are financial data that occurred at Jack and Andrew Company related to the production and sales of Taro Chips and Corn Chips during the year 20X1: Sales price/unit Product Taro Chips 10 Corn Chips 7.5 Budget 20X1 Variable Cost/unit Amount Sold 5.5 4 500,000 unit 750,000 unit Actual Realization Number of units produced Raw materials used in product raw material cost number of direct labor hours direct labor cost variable oh cost fixed oh cost standard cost & quantity raw material cost ($/gr) raw mterials used in the products (gr) direct labor cost/hours worked ($/gr) number of units produced/hours worked variable oh cost fixed oh cost 0.029 200 13 10 Realization 20X1 Sales price/unit Variable Cost/unit Amount Sold 12,000 2,640,000 72,500 1,300 15,360 65,205 72,200 64,400 70,400 10.1 7.75 5.75 3.7 504,300 unit 725,700 unit Jack and Andrew Company sells both products in the West Java area. For 20X1 budget reporting, Jack and Andrew Company assumes it has 12.5% market share based on all sales in the West Java region. The total sales of chips throughout West Java for the 20X1 period itself is predicted to be worth 10,000,000 units. However, the realization of sales in Java during 20X1 turned out to be 12,300,000 units. The following is information regarding the variance that occurred at Jack and Andrew Company during the 20X1 period: Sales Variance (in $) Sales volume variance sales mix variance sales quantity variance market share variance market size variance Cost Variance (in $) Direct material price variance direct material usage variance direct labor rate variance direct labor efficiency variance variable overhead spending variance variable overhead efficiency variance fixed overhead spending variance fixed overhead volume variance Taro Chips 19,350 F 55,350 F 36,000 U 1,199,250 U 1,121,250 F 4,060 F 6,960 U 1,540 F 1,300 U 2,415 F 2,220 U 1,800 U 3,200 F Corn Chips 85,050 U 43,050 U 42,000 U 1,199,250 U 1,121,250 F The accounting department of Jack and Andrew Company made a variance analysis report addressed to the directors of Jack and Andrew with a note that the company's condition this year was not good or financial performance was deteriorating. As one of the lead expert staff, you are asked to analyze all variance conditions at Jack and Andrew Company. Give an explanation of the causes of the variance and how it affects the company's finances. Question Do you agree with the statement of the accounting department of Jack and Andrew Company? Explain (15%)