Bus5110 | Accounting homework help


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:  

variances. The following data has been provided:




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





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


Gross Profit

    $      405,200



Unfavorable variance



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.

For this assignment, compute all required amounts and explain how the computations were performed. Describe whom you would work with to determine the causes of the variances and hypothesize on what caused the variances. Based on your analysis, recommend actions that management could take to improve the variances.

Superior papers will:

· Perform all calculations correctly.

· Articulate how the calculations were performed.

· Assess the variances computed and evaluate the operational results (i.e., is performance better or worse than budgeted?).

· Explain with whom you would work to identify the root causes of the variances.

· Propose well-thought-out causes for each variance.

· Conclude on which variances require management’s attention and recommend courses of action.

Be sure to use APA formatting in your paper.  Purdue University’s Online Writing LAB (OWL) is a free website that provides excellent information and resources for understanding and using the APA format and style. The OWL website can be accessed here: http://owl.english.purdue.edu/owl/resource/560/01/

This assignment will be assessed using the BUS 5110 Unit 5 Written Assignment rubric

Previous: Discussion AssignmentNext: Group Activity

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
100% Originality
The main foundation of any academic writing company is offering 100% originality in their orders. Make your order today and benefit from anti-plagiarized papers.
Customer Support 24/7
You can rest assured that our customer support team is consistently available to solve any difficulties and take your orders 24/7.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.