Submit a paper which is 2-3 pages in length (no more than 3-pages), exclusive of

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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 hourse 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 hourse 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.
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 per unit 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

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