Tamarisk 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		520	lbs.		$1,248		410	lbs.		$1,025		$223	U
Chang		400			920		410			1,025		105	F
Wyco		580			1,508		470			1,175		333	U
Total variance												$451	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.)

TAMARISK 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

$

$

$

Chang

Wyco

Total price variance

$

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

TAMARISK LANDSCAPING Variance Report Production Department For the Current Month

Project

Actual Pounds

Standard Pounds

Standard Price Per Pound

Quantity Variance

Explanation

Remington

$

$

New EmployeeSeeds on SalePurchased Poor-quality SeedsPurchased Higher-quality SeedsPrice/lb. Increased

Chang

New EmployeePurchased Poor-quality SeedsPurchased Higher-quality SeedsPrice/lb. IncreasedSeeds on Sale

Wyco

New EmployeePurchased Poor-quality SeedsSeeds on SalePrice/lb. IncreasedPurchased Higher-quality Seeds

Total quantity variance

2 Whispering Labs, Inc. provides mad cow disease testing for both state and federal governmental agricultural agencies. Because the companys customers are governmental agencies, prices are strictly regulated. Therefore, Whispering Labs must constantly monitor and control its testing costs. Shown below are the standard costs for a typical test.

Direct materials (2 test tubes @ $1.40 per tube)		$2.80
Direct labor (1 hour @ $32 per hour)		32.00
Variable overhead (1 hour @ $6.00 per hour)		6.00
Fixed overhead (1 hour @ $12.00 per hour)		12.00
Total standard cost per test		$52.80

The lab does not maintain an inventory of test tubes. As a result, the tubes purchased each month are used that month. Actual activity for the month of November 2020, when 1,400 tests were conducted, resulted in the following.

Direct materials (2,940 test tubes)		$3,822
Direct labor (1,456 hours)		45,136
Variable overhead		8,316
Fixed overhead		15,792

Monthly budgeted fixed overhead is $17,520. Revenues for the month were $91,000, and selling and administrative expenses were $3,600.

Compute the price and quantity variances for direct materials and direct labor.

Materials price variance		$		Neither favorable nor unfavorableFavorableUnfavorable
Materials quantity variance		$		UnfavorableNeither favorable nor unfavorableFavorable
Labor price variance		$		UnfavorableFavorableNeither favorable nor unfavorable
Labor quantity variance

Compute the total overhead variance.

Total Overhead variance

Prepare an income statement for management.

				$