Wiley PLUS Weygandt, Managerial Accounting, 7e MANAGERIAL ACCT (ACC 102) STANDAR

Question

Wiley PLUS Weygandt, Managerial Accounting, 7e MANAGERIAL ACCT (ACC 102) STANDARD vTEw PRINTER VERSION BACK. NEXT Exercise 1 Picard Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month, the company worked on three projects (Remington, Chang, and Wyco). The company is interested in controlling the materials 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 Remington project. The Chang project, however, received higher-than standard-quality seed that was on sale. The Wyco 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 Actual Standard Project Quantity Costs Quantity Costs Total Variance 530 lbs $1,272 440 lbs $1,144 $128 Remington Chang 400 880 410 1,066 186 F 600 1,620 500 1,300 320 Wyco $262 U Total variance (a) Prepare a variance report for the purchasing department. (Round actual and standard price per pound answers to 2 decimal places e.g. 1.25.) PICARD LANDSCAPING Variance Report Purchasing Department For the Current Month Actual Actual Standard Pounds Price Price Per Price Per Project Purchased Variance Pound Pound Remington Chang Total price VarianCe (b) Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.) PICARD LANDSCAPING Variance Report Production Department For the Current Month Standard Quantity Actual Price Per Pounds Variance Pound Pounds Remington Chang Tota quantity VarianCe LINK TO TEXT LINK TO TEXT Question Attempts: 0 of 5 used SUBMIT ANSWER SAVE FOR LATER.

Explanation / Answer

a) Price Variance Report Project Actual Pound Actual Price Standard Price Price Variance Purchased per pound per pound Actual Cost / Actual units Standard Price/ Standard units A B C (C-B)*A Remington 530 2.40 2.60 106.00 F Chang 400 2.20 2.60 160.00 F Wyco 600 2.70 2.60 -60.00 U Total Price Variance 206.00 F b) Quantity Variance Report Project Actual Pound Standard Pound Standard Price Quantity Variance A B C (B - A)* C Remington 530 440 2.60 -234 U Chang 400 410 2.60 26 F Wyco 600 500 2.60 -260 U Total quantity variance -468 U

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