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BUS-317 Topic 08 Assignment Question 1 of 4 3.25 / 10 View Policies Show Attempt History Current Attempt in Progress New attempt is in progress.
BUS-317 Topic 08 Assignment
Question 1 of 4
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James 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 | ||||||||
Remington | 510 | lbs. | $1,224 | 450 | lbs. | $1,125 | $99 | U | |||||
Chang | 400 | 880 | 410 | 1,025 | 145 | F | |||||||
Wyco | 550 | 1,430 | 480 | 1,200 | 230 | U | |||||||
Total variance | $184 | U |
(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.)
JAMES LANDSCAPING Variance Report Purchasing Department For the Current Month | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Project | Actual Pounds Purchased | Actual Price Per Pound | Standard Price Per Pound | Price Variance | Explanation | |||||||
Remington | enter actual pounds purchased | $enter Actual Price Per Pound in dollars rounded to 2 decimal places | $enter Standard Price Per Pound in dollars rounded to 2 decimal places | $enter price variance in dollars | select an option UnfavorableNeither favorable nor unfavorableFavorable | select an explanation Price/lb. IncreasedNew EmployeePurchased Higher-quality SeedsSeeds on SalePurchased Poor-quality Seeds | ||||||
Chang | enter actual pounds purchased | enter Actual Price Per Pound in dollars rounded to 2 decimal places | enter Standard Price Per Pound in dollars rounded to 2 decimal places | enter price variance in dollars | select an option Neither favorable nor unfavorableUnfavorableFavorable | select an explanation Purchased Poor-quality SeedsPurchased Higher-quality SeedsNew EmployeeSeeds on SalePrice/lb. Increased | ||||||
Wyco | enter actual pounds purchased | enter Actual Price Per Pound in dollars rounded to 2 decimal places | enter Standard Price Per Pound in dollars rounded to 2 decimal places | enter price variance in dollars | select an option Neither favorable nor unfavorableUnfavorableFavorable | select an explanation Purchased Higher-quality SeedsPurchased Poor-quality SeedsPrice/lb. IncreasedNew EmployeeSeeds on Sale | ||||||
Total price variance | $enter a total amount | select an option Neither favorable nor unfavorableUnfavorableFavorable |
(b) Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.)
JAMES LANDSCAPING Variance Report Production Department For the Current Month | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Project | Actual Pounds | Standard Pounds | Standard Price Per Pound | Quantity Variance | Explanation | |||||||
Remington | enter actual pounds | enter standard pounds | $enter Standard Price Per Pound in dollars rounded to 2 decimal places | $enter Quantity variance in dollars | select an option Neither favorable nor unfavorableFavorableUnfavorable | select an explanation Purchased Poor-quality SeedsSeeds on SalePurchased Higher-quality SeedsPrice/lb. IncreasedNew Employee | ||||||
Chang | enter actual pounds | enter standard pounds | enter Standard Price Per Pound in dollars rounded to 2 decimal places | enter Quantity variance in dollars | select an option FavorableUnfavorableNeither favorable nor unfavorable | select an explanation Seeds on SaleNew EmployeePurchased Poor-quality SeedsPurchased Higher-quality SeedsPrice/lb. Increased | ||||||
Wyco | enter actual pounds | enter standard pounds | enter Standard Price Per Pound in dollars rounded to 2 decimal places | enter Quantity variance in dollars | select an option FavorableUnfavorableNeither favorable nor unfavorable | select an explanation New EmployeePurchased Poor-quality SeedsPurchased Higher-quality SeedsPrice/lb. IncreasedSeeds on Sale | ||||||
Total quantity variance | $enter a total amount | select an option Neither favorable nor unfavorableUnfavorableFavorable |
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