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					Standard
Project		Quantity			Costs		Quantity			Costs		Total Variance
Remington		530	lbs.		$1,272		420	lbs.		$1,050		$222	U
Chang		400			880		410			1,025		145	F
Wyco		600			1,560		500			1,250		310	U
Total variance												$387	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.)

PICARD LANDSCAPING Variance Report Purchasing Department For the Current Month
Project		Actual Pounds Purchased		Actual Price Per Pound		Standard Price Per Pound		Price Variance
Remington				$		$		$	UnfavorableFavorableNeither favorable nor unfavorable
Chang									Neither favorable nor unfavorableUnfavorableFavorable
Wyco									UnfavorableNeither favorable nor unfavorableFavorable
Total price variance								$	Neither favorable nor unfavorableUnfavorableFavorable

(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
Project		Actual Pounds		Standard Pounds		Standard Price Per Pound		Quantity Variance
Remington						$		$	UnfavorableFavorableNeither favorable nor unfavorable
Chang									Neither favorable nor unfavorableFavorableUnfavorable
Wyco									Neither favorable nor unfavorableUnfavorableFavorable
Total quantity variance								$	UnfavorableFavorableNeither favorable nor unfavorable