Case 3: UP NY Diner At the end of the month, Jed's accountant sends him the following
financial results (along with a bill for services): Janice Young is the kitchen manager for UP NY
Diner, maker of Jed's Grouper Pasties. UP NY Diner got its start when Jed Baker, a snowbird
from upper NY, tried grilled grouper during a winter stayover in South Florida. He was so
impressed that he bought a pound of the fish at a farmer's market, froze it, and took it back to
upper NY to share with his friends. He didn't have quite enough to make it a meal, so he served it
in a pastie (pronounced Pass-T)-a Northern New York traditional dish. Over time it became his
tradition to serve grouper pasties each spring when he returned from the South. Eventually, he
built a kiosk out of a shed mounted on a trailer and started having his grandkids sell Jed's
Grouper Pasties at fairs and other summer events to help them pay for college. Within a few
years the business had expanded enough to open a central kitchen to prepare pasties. Because of
health regulations, the pasties are prepared in a central kitchen managed by Janice Young. Janice
is a great cook and longtime upper NY resident. She keeps things lively in the kitchen by telling
UP jokes, eh? When things are too busy in the kitchen for her, she recruits relatives to help her
out. Sometimes they aren't as precise in preparing the pasties as she would like, but when the
orders come in, the pasties must be made. Up until now, Jed hasn't worried too much about
numbers. He knows a good pastie, and his emphasis has always been on the customer experience
and having a fun time. But this summer his grandkids decide to put their college accounting to
work and suggest that he try using variance analysis. It seemed like a good idea to use some kind
of system to know if the pasties are being prepared properly, and the grandkids are persistent. Jed
sits down with his budding management accountants and puts together a plan. A few day later,
this is what they have: Actual June performance of the central pastie kitchen: Jed and his
grandkids sit down and compare the actual numbers to the budget, and this is what they see: The
June budget, based on standard costs: Jed takes a look at the numbers and shrugs. "The actual
results are only about 4% over budget, and most of that is in the ingredients. Everything looks
pretty good to me" he says. Is Jed's analysis correct?
Required: As Jed's trusted business advisor, please draft a memo addressed to Jed with your
analysis of the current performance. In your memo, answer the following questions. Include a
financial analysis (including the variance analysis in Requirement B and any other important
calculations) as an attached file or at the end of the memo, with all your calculations. a. Does the
variance report reflect the actual performance of Janice Young and the central kitchen? Why or
why not? b. Prepare a more useful variance analysis, and include it with your financial analysis.
Yo.
Unlocking the Power of ChatGPT and AI in Testing - A Real-World Look, present...
Case 3 UP NY Diner At the end of the month, Jeds accountant sends h.pdf
1. Case 3: UP NY Diner At the end of the month, Jed's accountant sends him the following
financial results (along with a bill for services): Janice Young is the kitchen manager for UP NY
Diner, maker of Jed's Grouper Pasties. UP NY Diner got its start when Jed Baker, a snowbird
from upper NY, tried grilled grouper during a winter stayover in South Florida. He was so
impressed that he bought a pound of the fish at a farmer's market, froze it, and took it back to
upper NY to share with his friends. He didn't have quite enough to make it a meal, so he served it
in a pastie (pronounced Pass-T)-a Northern New York traditional dish. Over time it became his
tradition to serve grouper pasties each spring when he returned from the South. Eventually, he
built a kiosk out of a shed mounted on a trailer and started having his grandkids sell Jed's
Grouper Pasties at fairs and other summer events to help them pay for college. Within a few
years the business had expanded enough to open a central kitchen to prepare pasties. Because of
health regulations, the pasties are prepared in a central kitchen managed by Janice Young. Janice
is a great cook and longtime upper NY resident. She keeps things lively in the kitchen by telling
UP jokes, eh? When things are too busy in the kitchen for her, she recruits relatives to help her
out. Sometimes they aren't as precise in preparing the pasties as she would like, but when the
orders come in, the pasties must be made. Up until now, Jed hasn't worried too much about
numbers. He knows a good pastie, and his emphasis has always been on the customer experience
and having a fun time. But this summer his grandkids decide to put their college accounting to
work and suggest that he try using variance analysis. It seemed like a good idea to use some kind
of system to know if the pasties are being prepared properly, and the grandkids are persistent. Jed
sits down with his budding management accountants and puts together a plan. A few day later,
this is what they have: Actual June performance of the central pastie kitchen: Jed and his
grandkids sit down and compare the actual numbers to the budget, and this is what they see: The
June budget, based on standard costs: Jed takes a look at the numbers and shrugs. "The actual
results are only about 4% over budget, and most of that is in the ingredients. Everything looks
pretty good to me" he says. Is Jed's analysis correct?
Required: As Jed's trusted business advisor, please draft a memo addressed to Jed with your
analysis of the current performance. In your memo, answer the following questions. Include a
financial analysis (including the variance analysis in Requirement B and any other important
calculations) as an attached file or at the end of the memo, with all your calculations. a. Does the
variance report reflect the actual performance of Janice Young and the central kitchen? Why or
why not? b. Prepare a more useful variance analysis, and include it with your financial analysis.
Your analysis should include the total budget variance as well as its price/rate/spending and
quantity/efficiency component. The following format might be helpful: c. In your written memo,
summarize your findings from the financial analysis prepared for Requirement B (i.e., what does
2. your report suggest about the various aspects of Janice's performance in the centralized
kitchen?). d. In your written memo, analyze these findings. For example, are some variances
more worrisome than others, what might have caused the variances, etc.