Homework Help is Here – Start Your Trial Now!
Business
Accounting
Lily 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 (a) Cartwright Building 4,540 Total variance ✓ Your answer is correct. Project Arrow Building Besler Building Quantity Cartwright Building Actual 3,720 gallons 3,820 Total price variance Costs $275,280 $290,320 4,000 $363.200 4,220 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. Actual Gallons Purchased 3,720 3,820 Costs 3,500 gallons $273,000 $312.000 $329,160 4,540 $ Standard $ $ Quantity Actual Price 74 76 80 $ $ Total $ Variance $2.280 U 21.680 F 34,040 U $14,640 U Lily Painting Service Variance Report - Purchasing Department For the month ended XX Standard Price 78 78 78 $ 14,880 7,640 9,080 13,440 Price Variance Favorable Favorable Unfavorable Favorable v V Explanation Poor Quality Paint Purchased/Cheaper ✓ High Quality Paint Purchased on sale Std. Quality Purchase/Price increased V

Lily 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 (a) Cartwright Building 4,540 Total variance ✓ Your answer is correct. Project Arrow Building Besler Building Quantity Cartwright Building Actual 3,720 gallons 3,820 Total price variance Costs $275,280 $290,320 4,000 $363.200 4,220 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. Actual Gallons Purchased 3,720 3,820 Costs 3,500 gallons $273,000 $312.000 $329,160 4,540 $ Standard $ $ Quantity Actual Price 74 76 80 $ $ Total $ Variance $2.280 U 21.680 F 34,040 U $14,640 U Lily Painting Service Variance Report - Purchasing Department For the month ended XX Standard Price 78 78 78 $ 14,880 7,640 9,080 13,440 Price Variance Favorable Favorable Unfavorable Favorable v V Explanation Poor Quality Paint Purchased/Cheaper ✓ High Quality Paint Purchased on sale Std. Quality Purchase/Price increased V

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 35P: Recently, Ulrich Company received a report from an external consulting group on its quality costs....
See similar textbooks
icon
Related questions
Topic Video
Question
(b) Prepare a variance report for the production department with the following columns: (1) Project, (2) Actual Gallons, (3) Standard Gallons, (4) Standard Price, (5) Quantity Variance, and (6) Explanation. Project Arrow Building Besler Building Cartwright Building Total quantity variance Actual Gallons Standard Gallons $ tA $ $ Lily Painting Service Variance Report - Production Department For the month ended XX Standard Price $ $ Quantity Variance Explanation > >
Transcribed Image Text:(b) Prepare a variance report for the production department with the following columns: (1) Project, (2) Actual Gallons, (3) Standard Gallons, (4) Standard Price, (5) Quantity Variance, and (6) Explanation. Project Arrow Building Besler Building Cartwright Building Total quantity variance Actual Gallons Standard Gallons $ tA $ $ Lily Painting Service Variance Report - Production Department For the month ended XX Standard Price $ $ Quantity Variance Explanation > >
Lily 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 Costs 3,720 gallons $275,280 3,500 gallons $273,000 bring $290,320 4,000 $363,200 4,220 Besler Building Total variance Cartwright Building 4,540 (a) Your answer is correct. Project Arrow Building Besler Building Quantity 3,820 Cartwright Building Actual Total price variance Actual Gallons Purchased 3,720 3,820 4,540 $ Standard 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. $ $ Quantity Costs Actual Price $312,000 $329,160 74 76 80 Total $ $ Variance $2,280 U 21,680 F 34,040 U $14,640 U Lily Painting Service Variance Report - Purchasing Department For the month ended XX Standard Price 78 78 78 $ $ 14,880 7,640 9,080 13,440 Price Variance Favorable Favorable Unfavorable Favorable Explanation Poor Quality Paint Purchased/Cheaper High Quality Paint Purchased on sale Std. Quality Purchase/Price increased
Transcribed Image Text:Lily 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 Costs 3,720 gallons $275,280 3,500 gallons $273,000 bring $290,320 4,000 $363,200 4,220 Besler Building Total variance Cartwright Building 4,540 (a) Your answer is correct. Project Arrow Building Besler Building Quantity 3,820 Cartwright Building Actual Total price variance Actual Gallons Purchased 3,720 3,820 4,540 $ Standard 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. $ $ Quantity Costs Actual Price $312,000 $329,160 74 76 80 Total $ $ Variance $2,280 U 21,680 F 34,040 U $14,640 U Lily Painting Service Variance Report - Purchasing Department For the month ended XX Standard Price 78 78 78 $ $ 14,880 7,640 9,080 13,440 Price Variance Favorable Favorable Unfavorable Favorable Explanation Poor Quality Paint Purchased/Cheaper High Quality Paint Purchased on sale Std. Quality Purchase/Price increased
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 4 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS