Picard 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 re 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 seed. Shown below are quantity and cost data for each project. Actual Project Remington Chang Wyco Total variance Standard Quantity 530 lbs. $1,272 400 880 600 1,620 Costs Quantity 440 lbs. 410 500 Costs $1,144 1,066 1,300 Total Variance $128 U 186 F 320 U $262 U
Picard 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 re 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 seed. Shown below are quantity and cost data for each project. Actual Project Remington Chang Wyco Total variance Standard Quantity 530 lbs. $1,272 400 880 600 1,620 Costs Quantity 440 lbs. 410 500 Costs $1,144 1,066 1,300 Total Variance $128 U 186 F 320 U $262 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Picard 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
Project
Remington
Chang
Wyco
Total variance
Quantity Costs
530 lbs. $1,272
400
880
600
1,620 500
Standard
Quantity
440 lbs.
410
Costs
$1,144
1,066
1,300
Total Variance
$128 U
186 F
320 U
$262 U](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cf9133d-2dd4-45f6-b833-be7167a81438%2F526cf171-5c8e-4e23-aa4c-59ec37e22b83%2F1c2manh_processed.png&w=3840&q=75)
Transcribed Image Text:Picard 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
Project
Remington
Chang
Wyco
Total variance
Quantity Costs
530 lbs. $1,272
400
880
600
1,620 500
Standard
Quantity
440 lbs.
410
Costs
$1,144
1,066
1,300
Total Variance
$128 U
186 F
320 U
$262 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.)
Project
Remington
Chang
Wyco
Total price
variance
Project
Remington
Actual
Pounds
Purchased
Chang
Wyco
Total
quantity
variance
PICARD LANDSCAPING
Variance Report - Purchasing Department
For the Current Month
Actual
Pounds
Actual
Price Per
Pound
(b)
Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.)
PICARD LANDSCAPING
Variance Report - Production Department
For the Current Month
$
Standard
Pounds
Standard
Price Per
Pound
$
Standard
Price Per
Pound
Price
Variance
Quantity
Variance
C](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cf9133d-2dd4-45f6-b833-be7167a81438%2F526cf171-5c8e-4e23-aa4c-59ec37e22b83%2Fr5fqwmj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(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.)
Project
Remington
Chang
Wyco
Total price
variance
Project
Remington
Actual
Pounds
Purchased
Chang
Wyco
Total
quantity
variance
PICARD LANDSCAPING
Variance Report - Purchasing Department
For the Current Month
Actual
Pounds
Actual
Price Per
Pound
(b)
Prepare a variance report for the production department. (Round standard price per pound to 2 decimal places, e.g. 1.25.)
PICARD LANDSCAPING
Variance Report - Production Department
For the Current Month
$
Standard
Pounds
Standard
Price Per
Pound
$
Standard
Price Per
Pound
Price
Variance
Quantity
Variance
C
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