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Please help on this questions Anda Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects

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Anda Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Building A, the Building B and the Building C). 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 Building A project. The Building B project, however, received higher-than-standard-quality paint that was on sale. The Building C 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 Building A 3,750 gallons RM285,000 3,500 gallons RM280,000 RM 5,000 U Building B 3,800 RM296,400 4,000 RM320,000 23,600 F Building C 4,500 RM369,000 4,200 RM336,000 33,000 U Total variance RM14,400 U You are required to: (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. (b) 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. (c) In an effort to improve performance, Anda Painting Service found a new supplier that sold average quality paint. The initial quantity and cost data for each project is below: Actual Standard Total Project Quantity Costs Quantity Costs 3,500 gallons RM280,000 Variance Building A 3,650 gallons RM286,525 RM 6,525 U Building B 3,800 RM298,300 4,000 RM320,000 21,700 F Building C 4,350 RM341,475 4,200 RM336,000 5,475 U Total variance RM 9,700 F (1) 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. (2) 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. (3) Discuss whether the change to the new supplier is beneficial to Anda Painting Service and why or why not

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