Suds & Cuts is a local pet grooming shop owned by Colin Bark Collin has prepared

Question

Suds & Cuts is a local pet grooming shop owned by Colin Bark Collin has prepared the tollowing standand cost card for each dog bath given: Slandard 25 at $0.10 per oa 23 gal $ 004 per gal 145 r $11.00 per hr Direct labor 15.95 Duning the month of July, Collin's employees gave 430 baths. The actual resuits were 765 ounces of shampoo used (oost of $153.00, 7,300 galons of water used (cost of $584) and labor costs for 370 hours (eost of 34,551), Required 1. Calculae Suds& Cuts direct unfavorablej 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 tor favorable,Ufor Direct Material Price Dect Material Quntity Variance Varianore 2. alata e Suds & Cuts ?ect lab vanances for the month of July indicate the enect of each variance by selecting ? tor tavorable u for untavorable. Round your answers to nearest dollar ana nt Direct Labor Efficiency Variance

Explanation / Answer

Answer

Qty

Rate

Cost

Shampoo

[430 x 2.5] 1075

0.1

$107.5

Water

[430 x23] 9890

0.04

$395.6

Direct labor

[430 x 1.45] 623.5

11

$6858.5

Qty

Rate

Cost

Shampoo

765

0.2

153

Water

7300

0.08

584

Direct labor

370

12.3

4551

Shampoo

Water

Standard Rate

0.1

0.04

(-) Actual Rate

0.2

0.08

Difference (A)

-0.1

-0.04

Actual Qty (B)

765

7300

Material Price Variance (A x B)

76.5

292

Unfavourable

Unfavourable

Shampoo

Water

Standard Quantity

1075

9890

(-) Actual Quantity

765

7300

Difference (A)

310

2590

Standard Rate (B)

0.1

0.04

Material Quantity Variance (A x B)

31

103.6

Favourable

Favourable

Direct Labor

Standard rate per hour

11

(-) Actual rate per hour

12.3

Difference (A)

-1.3

Actual Hours (B)

370

Labor rate Variance (A x B)

481

Unfavourable

Direct Labor

Standard hours

623.5

(-) Actual Hours

370

Difference (A)

253.5

Standard rate per hour (B)

11

Labor rate Variance (A x B)

2788.5

Favourable

Qty

Rate

Cost

Shampoo

[430 x 2.5] 1075

0.1

$107.5

Water

[430 x23] 9890

0.04

$395.6

Direct labor

[430 x 1.45] 623.5

11

$6858.5

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