Picard Landscaping plants grass seed as the basic landscaping for business campu
ID: 2490276 • Letter: P
Question
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 m 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.Explanation / Answer
Answer:
PICARD LANDSCAPING Variance Report - Purchasing Department For the current month Project Actual pounds purchased(lbs) Actual price per pound($) Standard price per pound($) Price Variance (Actual pounds * (Standard price - Actual price)) Favorable/ Unfavorable Remington 540 2.40 2.60 108 108 Favorable Chang 400 2.30 2.60 120 120 Favorable Wyco 590 2.70 2.60 -59 59 Unfavorable