Question 1

Martinez 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 540lbs. $1,296 450lbs. $1,170 $126U

Chang 400 920 410 1,066 146F

Wyco 590 1,593 500 1,300 293U

Total variance $273U

Display a variance report for the purchasing department.(Round actual and standard price per pound answers to 2 decimal places e.g. 1.25.)

MARTINEZLANDSCAPING

Variance Report - Purchasing Department

For the Current Month

Project Actual Actual Standard Price V Exp

Pounds Purchased Price Per Pound Price Per Pound

Remington

$

$

$

Favorable

Neither favorable nor unfavorable

Unfavorable

Purchased poor-quality seeds

Chang

Unfavorable

Neither favorable nor unfavorable

Favorable

Seeds on sale

Wyco

Neither favorable nor unfavorable

Favorable

Unfavorable

Price increasedTotal price variance$

Unfavorable

Favorable

Neither favorable nor unfavorable

LINK TO TEXT

LINK TO TEXT

Display a variance report for the production department.(Round standard price per pound to 2 decimal places, e.g. 1.25.)

MARTINEZLANDSCAPING

Variance Report - Production Department

For the Current Month

Project

Actual Pounds Standard Pounds Standard Price Per Poun Quantity Variance

Explanation

Remington

$

$

Unfavorable

Neither favorable nor unfavorable

Favorable

Purchased poor-quality seeds

Chang

Unfavorable

Neither favorable nor unfavorable

Favorable

Purchased higher-quality seeds

Wyco

Unfavorable

Neither favorable nor unfavorable

Favorable

New employeeTotal quantity variance$

Favorable

Unfavorable

Neither favorable nor unfavorable

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