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 building. Shown below are quantity and cost data for each project.

		Actual					Standard					Total
Project		Quantity			Costs		Quantity			Costs		Variance
Arrow Building		3,800	gallons		$292,600		3,560	gallons		$288,360		$4,240	U
Besler Building		3,740			$295,460		3,940			$319,140		23,680	F
Cartwright Building		4,500			$373,500		4,210			$341,010		32,490	U
Total variance												$13,050	U

(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. (Round price per unit to 2 decimal places, e.g. 15.25.)

Anders Painting Service Variance Report Purchasing Department For the month ended XX
Project		Actual Gallons Purchased		Actual Price		Standard Price		Price Variance			Explanation
Arrow Building				$		$		$	FavorableUnfavorableNeither Favorable nor Unfavorable		High Quality Paint Purchased on salePoor Quality Paint Purchased/CheaperStd. Quality Purchase/Price increased
Besler Building									FavorableUnfavorableNeither Favorable nor Unfavorable		High Quality Paint Purchased on salePoor Quality Paint Purchased/CheaperStd. Quality Purchase/Price increased
Cartwright Building									FavorableUnfavorableNeither Favorable nor Unfavorable		High Quality Paint Purchased on salePoor Quality Paint Purchased/CheaperStd. Quality Purchase/Price increased
Total price variance								$	FavorableUnfavorableNeither Favorable nor Unfavorable