Exercise 23-14 Picard Landscaprig plants grass seed a the basic andscap tig ur b

Question

Exercise 23-14 Picard Landscaprig plants grass seed a the basic andscap tig ur business carn u es Dunnu a recen murth the curnpany worked on hree pro ects Remington, Chany and Wyco ·The curn any is Intere ed in cuntru lin tie materials custs name y thesc plantings projects e rass seed fur In order to provide manageent 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, recelved higher-than-standard-quality seed that was on sale, The Wyco project recelved standard-quality seed. However, the price had increased and a new employee was used to spread the seed. Shown below are quantity and cest data for each project Project Remington Chang Wyco Quantity Costs Quantity Costs Total Varlance 510 lbs- 400 550 $1,224 450 lbs 990 410 1,430 430 $1,125 1,025 1,200 99 U 145 F 230 U $184 U Total variance Prepare a variance report for the purchasing department. (Round actual and standard price per pound answers to 2 decinal places e.g. 1.25.) Variance Report-Purchasiny Deparlment For the Gurrent Montth Actual Pounds Actual Price Per Pound Price Variance Price Per chang Wyco Total price variance

Explanation / Answer

Answer a. Picard Landscaping Variance Report - Purchasing Department For the Current Month Project Actual Pounds Purchased Actual Price Per Pound Standard Price Per Pound Price Variance Remington                       510                     2.40                          2.50                51 (F) Chang                       400                     2.20                          2.50              120 (F) Wyco                       550                     2.60                          2.50                55 (U) Total Price Variance              116 (F) Material Price Variance = (SR - AR) X AQ Purchased Answer b. Picard Landscaping Variance Report - Production Department For the Current Month Project Actual Pounds Standard Pounds Standard Price Per Pound Quantity Variance Remington                       510                      450                          2.50              150 (U) Chang                       400                      410                          2.50                25 (F) Wyco                       550                      480                          2.50              175 (U) Total Quantity Variance              300 (U) Material Quantity Variance = (SQ - AQ) X SR

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