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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.

Respuesta :

The standard cost is $15 per carton and the actual cost is $20.26 per carton.

How to calculate the standard cost

From the complete question, the standard cost is the budgeted cost of producing one unit of good. This will be:

Fruit = 200000/20000 = 10

Packaging = 10000/20000 = 0.5

Labor = 90000/20000 = 4.5

Standard cost = 10 + 0.5 + 4.5 = 15

Also, the actual cost will be calculated thus:

Fruit = 244200/20000 = 12.21

Packaging = 11000/20000 = 7.5

Labor = 150000/20000 = 7.5

Actual cost will be:

= 12.21 + 0.55 + 7.5

= 20.26

In conclusion, the actual cost is $20.26.

Learn more about standard cost on:

https://brainly.com/question/25279292

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