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 Project Arrow Building Besler Building Cartwright Building Actual Quantity Total price variance 3,720 gallons 3,820 Costs $275,280 3.500 gallons $290,320 4.000 $363,200 4,220 Actual Gallons Purchased 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. $ Standard $ Quantity $ Costs Actual Price $273,000 $312,000 $329,160 $ $ 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 $ Price Variance Explanation

Name: Lily Painting Service specializes in painting tall office buildings.
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 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 controllin