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:

During the month of July, Collin’s employees gave 480 baths. The actual results were 790 ounces of shampoo used (cost of $560.90), 7,800 gallons of water used (cost of $624), and labor costs for 420 hours (cost of $5,544)

Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July

Calculate Suds & Cuts direct labor variances for the month of July.

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:

Explanation / Answer

For shampoo                                     = 480 (1.80 – 1.17) = 302.40 Favorable

For Water                                            = 480 (1.96 – 1.30) = 316.80 Favorable

For shampoo                                     = 0.60 (1440 – 790) = 390 Favorable

For Water                                            = 0.07 (13440 – 7800) = 394.8 Favorable

For shampoo                                     = 302.40 + 390 = 692.40 Favorable

For Water                                            = 316.80 + 394.8 = 711.60

Direct Labor Rate Variance           = Actual Hour (Standard Rate – Actual Rate)

                                                                = 420 (20.40 – 11.55) =3,717 Favorable

Direct Labor Efficiency Variance = Standard Rate (Standard Hour – Actual Hour)

                                                                = 12 (816 – 420) = 4,752 Favorable

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

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