Sheridan 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 Cartwright 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. Project Arrow Building Besler Building Cartwright Building Total variance Actual Quantity 3,730 gallons 3.750 4,450 Costs $287.210 $296,250 $369,350 Standard Quantity Costs 3,500 gallons $283,500 3,940 $319,140 4,150 $336,150 Total Variance $3.710 U 22,890 F 33,200 U $14,020 U 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, eg. 15.25.) SHERIDAN Paintings Variance Report - Purchasing For the month ended Actual Gallons Purchased Project Actual Price Standard Price Arrow Building $ $ $ Besler Building Cartwright Building Total price variance 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 (Round price per unit to 2 decimal places, eg. 15.25.) SHERIDAN Paintings Varlance Report - Production For the month ended Standard Price Actual Gallons Standard Gallons Project Arrow Building Besler Building Cartwright Building Total quantity variance In an effort to improve performance, Sheridan Painting Service found a new supplier that sold average quality paint. The initial quantity and cost data for each project is below: Project Arrow Building Besler Building Cartwright Building Total variance Actual Quantity 3,630 gallons 3,750 4,290 Costs $288.222 $297.750 $340,626 Standard Quantity Costs 3,500 gallons $283,500 3.940 $319,140 4.150 $336,150 Total Variance $4,722 U 21,390 F 4,476 U $12,192 F 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.) SHERIDANPainting Sed Varlance Report - Purchasing For the month ended Actual Gallons Purchased Actual Price Project Arrow Building Standard Price $ Bester Building Cartwright Besler Building Cartwright Building Total price variance 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. (Round price per unit to 2 decimal places, eg. 15.25.) SHERIDAN Paintings Variance Report - Production For the month ended Standard Price Actual Gallons Standard Gallons Project Arrow Building Besler Building Cartwright Building Total quantity variance
