Actual Standard Project Quantity Costs Quantity Costs Variance 100 Total varianc
ID: 2348384 • Letter: A
Question
Actual
Standard
Project
Quantity
Costs
Quantity
Costs
Variance
100
Total variance
$60
For the Current Month
Project
Actual
Pounds Purchased
Actual Price
Standard Price
Price Variance
Explanation
$
For the Current Month
Project
Actual Pounds
Standard Pounds
Standard Price
Quantity Variance
Explanation
$
Donohue Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month the company worked on three projects (Macintosh, Chang, and Stilles). The company is interested in controlling the material costs, namely the grass seed, for these plantings projects. In order to provide management with useful cost control information, the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality seed for the Macintosh project. The Chang project, however, received higher-than-standard-quality seed that was on sale. The Stilles project received standard quality seed; however, the price had increased and a new employee was used to spread the seed. Shown below are quantity and cost data for each project. Prepare a variance report for the purchasing department: (Round Actual Price and Standard Price to 2 decimal places, e.g. 10.50.) Prepare a variance report for the production department. (Standard Price to 2 decimal places, e.g. 10.50.)Explanation / Answer
Variance report for purchasing department
Project Actual pounds Actual price Standard price Price variance
Macintosh 500 2.35 2.50 75F
Chang 400 2.40 2.50 40F
Stilles 500 2.60 2.50 50A
65F
Variance report for production department
Project Actual pounds Standard pound Standard price Quantity variance
Macintosh 500 460 2.50 100A
Chang 400 410 2.50 25F
Stilles 500 480 2.50 50A
125A
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