Cheyenne 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 530 lbs. $1,272 440 lbs. $1,100 $172 U Chang 400 880 410 1,025 145 F Wyco 550 1,430 440 1,100 330 U Total variance $357 U Prepare a variance report for the purchasing department. (Round actual and standard price per pound answers to 2 decimal places e.g. 1.25.) CHEYENNE LANDSCAPINGVariance Report – Purchasing DepartmentFor the Current Month Project ActualPounds Purchased ActualPrice Per Pound StandardPrice Per Pound Price Variance Explanation Remington $ $ $ UnfavorableFavorableNeither favorable nor unfavorable Purchased poor-quality seeds Chang Neither favorable nor unfavorableUnfavorableFavorable Seeds on sale Wyco FavorableNeither favorable nor unfavorableUnfavorable Price increased Total price variance $ UnfavorableFavorableNeither favorable nor unfavorable LINK TO TEXT LINK TO TEXT Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.) CHEYENNE LANDSCAPINGVariance Report – Production DepartmentFor the Current Month Project Actual Pounds Standard Pounds StandardPrice Per Pound Quantity Variance Explanation Remington $ $ Neither favorable nor unfavorableUnfavorableFavorable Purchased poor-quality seeds Chang FavorableUnfavorableNeither favorable nor unfavorable Purchased higher-quality seeds Wyco Neither favorable nor unfavorableFavorableUnfavorable New employee Total quantity variance $ UnfavorableFavorableNeither favorable nor unfavorable

Cheyenne 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 530 lbs. $1,272 440 lbs. $1,100 $172 U Chang 400 880 410 1,025 145 F Wyco 550 1,430 440 1,100 330 U Total variance $357 U Prepare a variance report for the purchasing department. (Round actual and standard price per pound answers to 2 decimal places e.g. 1.25.) CHEYENNE LANDSCAPINGVariance Report – Purchasing DepartmentFor the Current Month Project ActualPounds Purchased ActualPrice Per Pound StandardPrice Per Pound Price Variance Explanation Remington $ $ $ UnfavorableFavorableNeither favorable nor unfavorable Purchased poor-quality seeds Chang Neither favorable nor unfavorableUnfavorableFavorable Seeds on sale Wyco FavorableNeither favorable nor unfavorableUnfavorable Price increased Total price variance $ UnfavorableFavorableNeither favorable nor unfavorable LINK TO TEXT LINK TO TEXT Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.) CHEYENNE LANDSCAPINGVariance Report – Production DepartmentFor the Current Month Project Actual Pounds Standard Pounds StandardPrice Per Pound Quantity Variance Explanation Remington $ $ Neither favorable nor unfavorableUnfavorableFavorable Purchased poor-quality seeds Chang FavorableUnfavorableNeither favorable nor unfavorable Purchased higher-quality seeds Wyco Neither favorable nor unfavorableFavorableUnfavorable New employee Total quantity variance $ UnfavorableFavorableNeither favorable nor unfavorable

Name: Cheyenne Landscaping plants grass seed as the basic landscaping for bu
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Description: Cheyenne 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	Actual		Standard
Project	Quantity		Costs		Quantity		Costs	Total Variance
Remington	530	lbs.		$1,272		440	lbs.	$1,100	$172	U
Chang	400			880		410		1,025	145	F
Wyco	550			1,430		440		1,100	330	U
Total variance									$357	U

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

CHEYENNE 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		$	$	$	UnfavorableFavorableNeither favorable nor unfavorable		Purchased poor-quality seeds
Chang					Neither favorable nor unfavorableUnfavorableFavorable		Seeds on sale
Wyco					FavorableNeither favorable nor unfavorableUnfavorable		Price increased
Total price variance				$	UnfavorableFavorableNeither favorable nor unfavorable

LINK TO TEXT

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

CHEYENNE LANDSCAPING Variance Report – Production Department For the Current Month
Project	Actual Pounds	Standard Pounds	Standard Price Per Pound	Quantity Variance		Explanation
Remington			$	$	Neither favorable nor unfavorableUnfavorableFavorable		Purchased poor-quality seeds
Chang					FavorableUnfavorableNeither favorable nor unfavorable		Purchased higher-quality seeds
Wyco					Neither favorable nor unfavorableFavorableUnfavorable		New employee
Total quantity variance				$	UnfavorableFavorableNeither favorable nor unfavorable

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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