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Donohue Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month the company worked on three projects...
Donohue Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month the company worked on three projects (Macintosh, Chang, and Stilles). 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 Macintosh project. The Chang project, however, received higher-than-standard-quality seed that was on sale. The Stilles 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.
