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BUS 5110 Unit 5 Written Assignment Guide (100% Correct Calculations) $3.99   Add to cart

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BUS 5110 Unit 5 Written Assignment Guide (100% Correct Calculations)

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Guide to the assignment on cost variance analysis. Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no greater than 12 points in size. The paper should cite at lea...

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  • September 9, 2020
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BUS 5110 Managerial Accounting Unit 5 Written Assignment (WA)



Assignment Guide
BUS5110 Unit 5 Written Assignment

Question
Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of the reference
page. Paper should be double spaced in Times New Roman (or its equivalent) font which is no
greater than 12 points in size. The paper should cite at least two sources in APA format. One
source can be your textbook.
Please describe the circumstances of the following case study and recommend a course of action.
Explain your approach to the problem, perform relevant per unit calculations and analysis, and
formulate a recommendation. 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:
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

Specifically, management needs to know the:

 Standard cost per unit (carton)
 Actual cost per unit

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