Panderia Homes builds single-family homes near Santa Fe, New Mexico. The company prides itself on designing beautiful homes that are built in ways that reduce environmental impact and provide energy savings, long-lasting value and comfort, at a price that middle-income families can afford.
Panderia's sustainability standards include the following requirements:
€¢ At least 80% of total raw material costs will be sourced from local suppliers (within a 100 mile radius) to reduce transportation costs and to boost the local economy.
€¢ At least 60% of lumber will come from recycled sources rather than virgin wood.
€¢ All appliances will be ENERGY STAR® rated to reduce energy consumption by an average of 50%.
€¢ All paints, woodwork, and carpet materials will emit low or zero volatile organized compounds (VOCs) for improved air quality.
Panderia's job order cost system is designed to capture data to determine whether the company is meeting these standards. The job cost sheet for a job that is in process is summarized below:

Required:
1. Is Panderia meeting each of its sustainability standards? Why or why not?
2. How could managers use the information to make sustainability improvements?

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% from Meets Energy Recycled and Conservation Materials Supplier Albuquerque, Los Angeles, Material Type Quantity Unit Cost Total Cost Location Standards? Lumber .000 $20.00 $20,000 New Mexico 80% Yes Appliances 8 $2,000 $16.000 Califomia 10% Energy Star Rated Cabinets Windows 500 200 $20,000 $10,000 Santa Fe, New Mexico Taos, New Mexico 40 30% 20% Low-VOC Low-E 50