Crane Painting Service specializes in painting tall office buildings. During a recent month, the company worked...
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Crane Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts. 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 paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the building. Shown below are quantity and cost data for each project. Project Arrow Building Besler Building Cartwright Building Total variance Actual Quantity 3,800 gallons 3,860 4,510 Costs $304,000 $316,520 $387,860 Standard Quantity 3,560 gallons 4,050 4,210 Costs $299,040 $340,200 $353,640 Total Variance $4,960 U 23,680 F 34,220 U $15,500 U Prepare a variance report for the purchasing department with the following columns: (1) Project, (2) Actual Gallons Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation. (Round price per unit to 2 decimal places, e.g. 15.25.) Project Arrow Building Besler Building Cartwright Building Total price variance Actual Gallons Purchased LA Actual Price CRANE Painting Serv Variance Report - Purchasing For the month ended Standard Price LA Prepare a variance report for the purchasing department with the following columns: (1) Project, (2) Actual Gallons Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation. (Round price per unit to 2 decimal places, e.g. 15.25.) ANE Painting Service port - Purchasing Department the month ended XX tA +A Price Variance Explanation High Quality Paint Purchased on sale Poor Quality Paint Purchased/Cheaper Std. Quality Purchase/Price increased Crane Painting Service specializes in painting tall office buildings. During a recent month, the company worked on three painting projects (the Arrow Building, the Besler Building and the Cartrwright Building). The company is interested in controlling the materials costs, namely the paint, used for these painting contracts. 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 paint for the Arrow Building project. The Besler Building project, however, received higher-than-standard-quality paint that was on sale. The Cartwright Building project received standard-quality paint. However, the price had increased and a new employee was used to paint the building. Shown below are quantity and cost data for each project. Project Arrow Building Besler Building Cartwright Building Total variance Actual Quantity 3,800 gallons 3,860 4,510 Costs $304,000 $316,520 $387,860 Standard Quantity 3,560 gallons 4,050 4,210 Costs $299,040 $340,200 $353,640 Total Variance $4,960 U 23,680 F 34,220 U $15,500 U Prepare a variance report for the purchasing department with the following columns: (1) Project, (2) Actual Gallons Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation. (Round price per unit to 2 decimal places, e.g. 15.25.) Project Arrow Building Besler Building Cartwright Building Total price variance Actual Gallons Purchased LA Actual Price CRANE Painting Serv Variance Report - Purchasing For the month ended Standard Price LA Prepare a variance report for the purchasing department with the following columns: (1) Project, (2) Actual Gallons Purchased, (3) Actual Price, (4) Standard Price, (5) Price Variance, and (6) Explanation. (Round price per unit to 2 decimal places, e.g. 15.25.) ANE Painting Service port - Purchasing Department the month ended XX tA +A Price Variance Explanation High Quality Paint Purchased on sale Poor Quality Paint Purchased/Cheaper Std. Quality Purchase/Price increased
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Ca Projet Arrow Besler Actual Gallon 3690 3860 Cartwright 4380 S... View the full answer
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
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