Kindly make the answer typed or in Excel CE 25-1 Anders Painting Service special
ID: 2468330 • Letter: K
Question
Kindly make the answer typed or in Excel
CE 25-1 Anders Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts 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 paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the buildin Shown below are quantity and cost data for each project. Actual Standard Total Variance $ 5,000 U 23,600F 33,000 U Costs Quantity Costs Project Arrow Building Besler Building Cartwright Building 4,500 Quantit 3,750 gallons $285,000 3,500 gallons $280,000 $296,400 4,000 $369,000 4,200 3,800 $320,000 $336,000 Total variance Instructions (a) Prepare a variance report for the purchasing department with the following columns: (1) Project, (2) Actual Gallons Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation. Prepare a variance report for the production department with the following columns: (1) Project, (2) Actual Gallons, (3) Standard Gallons, (4) Standard Price, (5) Quantity Variance, and (6) Explanation. (b) (c)In an effort to improve performance, Anders Painting Service found a new supplier that sold average quality paint. The initial quantity and cost data for each project is below:Explanation / Answer
Project Actula Gallon Purchased Actual price Standard Price Price variance Explanation Arrow Building 3750 76 80 -15000 F Besler Building 3800 78 80 -7600 F Cartwright Building 4500 82 80 9000 U Total -13600 F Arrow Building 285000/3750 76 280000/3500 80 Besler Building 296400/3800 78 320000/4000 80 Cartwright Building 369000/4500 82 336000/4200 80 Project Actula Gallon Purchased Standard Gallon Standard Price Price variance Explanation Arrow Building 3750 3500 80 20000 U Besler Building 3800 4000 80 -16000 F Cartwright Building 4500 4200 80 24000 U Total 28000 U Effort to improve performance Project Actula Gallon Purchased Actual price Standard Price Price variance Explanation Arrow Building 3650 78.5 80 -5475 F Besler Building 3800 78.5 80 -5700 F Cartwright Building 4350 78.5 80 -6525 F Total -17700 F Arrow Building 286525/3650 78.5 280000/3500 80 Besler Building 298300/3800 78.5 320000/4000 80 Cartwright Building 341475/4350 78.5 336000/4200 80 Project Actula Gallon Purchased Standard Gallon Standard Price Price variance Explanation Arrow Building 3650 3500 80 12000 U Besler Building 3800 4000 80 -16000 F Cartwright Building 4350 4200 80 12000 U Total 8000 U Yes it is more favourable to change to the new supplier because there is Favourable price variance $17700 as against previous one which was $13600 favourable. Ans quantity variance is also less unfavourable it is $8000 against the previous with more unfavourable variance of $28000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.