Shatner 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 material 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.

Â	Actual		Standard		Â
Project	Quantity	Costs	Quantity	Costs	Total Variance
Remington	500 lbs.	$1,175	460 lbs.	$1,150	$ 25 U
Chang	400	960	410	1,025	65 F
Wyco	500	1,300	480	1,200	100 U
Total variance	Â	Â	Â	Â	$ 60 U

Instructions

(a) Prepare a variance report for the purchasing department with the following columns:

(1) Project, (2) Actual pounds purchased, (3) Actual price, (4) Standard price, (5) Price variance, and (6) Explanation.

(b) Prepare a variance report for the production department with the following columns:

(1) Project, (2) Actual pounds, (3) Standard pounds, (4) Standard price, (5) Quantity variance, and (6) Explanation.