Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepar

Question

Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dog bath given: QuantityStandard Rate 1.9 oz. 0.20 per oz. 17 gal. 0.04 per gal Unit Cost Shampoo Water Direct labor $ 0.38 0.68 11.50 1.15 hr. $10.00 per hr. During the month of July, Collin's employees gave 370 baths. The actual results were 735 ounces of shampoo used (cost of $205.80), 6,700 gallons of water used (cost of $536), and labor costs for 310 hours (cost of $3,658). Required 1. Calculate Suds&Cuts; direct materials variances for both shampoo and water for the month of July. (Round your answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Shampoo Water Direct Material Price Variance Direct Material Quantity Variance 2. Calculate Suds & Cuts direct labor variances for the month of July. (Indicate the effect of each variance by selecting F" for favorable, "U" for unfavorable. Round your answers to nearest dollar amount.) Direct Labor Rate Variance Direct Labor Efficiency Variance

Explanation / Answer

Material variance :

2) Labour variance :
Labour rate variance = (10*310-3658) = 558 U

Labour efficiency variance = (370*1.15-310)*10 = 1155 U

Shampoo Shampoo Water Water Direct material price variance (0.20*735-205.80) = 58.80 U (0.04*6700-536) = 268 U Direct material quantity variance (370*1.9-735)*0.20 = 6.4 U (370*17-6700)*0.04 = 16.4 U

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