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 Standard Unit Cost 0.24 0.40 7.20 Standard Shampoo Water Direct labor QuantityStandard Rate 1.2 oz. $ 0.20 per oz 10 gal. $0.04 per gal 0.8 hr. $ 9.00 per hr During the month of July, Collin's employees gave 300 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448) 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.) Shampodo Water Direct Material Price Variance Direct Material Quantity Variance

Explanation / Answer

Requirement 1:

Direct Material Price Variance

Shampoo:

= Actual Qty x ( Standard Price – Actual Price)

=(Actual Qty x Standard Price)- (Actual Qty x Actual Price)

=(700 x 0.20)-($182.00)

=$140-$182

=-$32 U

Water:

= Actual Qty x ( Standard Price – Actual Price)

=(Actual Qty x Standard Price)- (Actual Qty x Actual Price)

=(6,000 x 0.04)-($420.00)

=$240-$420

=-$180 U

Direct Material Qty Variance

Shampoo:

Standard Qty= Standard Qty for Actual Production=1.20 x300=360

= Standard Price x ( Standard Qty– Actual Qty)

=$0.20 x (360-700)

=$0.20 x -340

=-$68 U

Water:

Standard Qty= Standard Qty for Actual Production Production=0.8x300=240

= Standard Price x ( Standard Qty– Actual Qty)

=$0.04 x (3,000-6,000)

=$0.04 x -3,000

=-$120 U

Requirement 2:

Direct Labor Rate Variance

=Actual hrs x ( Standard Rate – Actual Rate)

=(Actual hrs x Standard Rate) – (Actual hrs x Actual Rate

=(240 hrs x 9)-$2,448

=$2,160 -$2,448

=-$288 U

Direct Labor Efficiency Variance= Standard Rate x ( Standard Hrs– Actual Hrs)

                                                           =$9(240-240)

                                                           =$9 x 0

                                                             =0

Requirement 1:

Shampoo

Water

Direct Material Price Variance

$    32.00

U

$ 180.00

U

Direct Material Qty Variance

$    68.00

U

$ 120.00

U

Requirement 2:

Labor

Direct Labor Rate Variance

$ 288.00

U

Direct Labor Efficiency Variance

$           0

Shampoo

Water

Direct Material Price Variance

$    32.00

U

$ 180.00

U

Direct Material Qty Variance

$    68.00

U

$ 120.00

U

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.