Imperial Landscaping plants grass seed as basic landscaping for business terrains. During a recent month, the company worked on three projects (Ames, Korman, and Stilles). The company is interested in controlling its material costs-grass seed costs-for these planting 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 seeds for the Ames project. The Korman project, however, received seed that was on sale but was higher than standard quality. The Stilles project received standard seeds; however, the price had increased and a new employee had spread the seed. Shown below are quantity and cost data for each project

Instructions
(a) Prepare a variance report for the purchasing department with the following column heading: (1) Project, (2) Actual Kilograms Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation.
(b) Prepare a variance report for the production department with the following column headings: (1) Project, (2) Actual Kilograms, (3) Standard Kilograms, (4) Standard Price, (5) Quantity Variance, and (6) Explanation.

Actual Standard Project Ames Korman Stilles Total variance Costs $1,400 1,160 1,328 Quantity Costs Total Variance uantity 500 kg 400 415 460 kg$1,380 410 400 20 U 70 F 128 U $ 78 U 1,230 1,200