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 QuantityStandard Rate Unit Standard Shampoo Water Direct labor 3.1 oz. $ 0.70 per oz 29 gal. $ 0.07 per gal. 1.75 hr. $12.00 per hr. $ 2.17 2.03 21.00 During the month of July, Collin's employees gave 490 baths. The actual results were 795 ounces of shampoo used (cost of $643.95), 7,900 gallons of water used (cost of $632), and labor costs for 430 hours (cost of $5,719) 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

Shampoo:' Std qty allowed for actual output (490*3.1) 1519 Std price per unit 0.7 Actual Qty consumed: 795 Actual price er unit 0.81 Material price variance= Actual Qty (Std pricec-Actual price) 795 (0.70-0.81)= 87.45U Material Qty variance= Std price (Std qty -Actual qty) 0.70 (1519-795)= $506.80 F Water: Std qty allowed (490*29) 14210 Std price per gallon 0.07 Actual qty used: 7900 Actual Price per unit 0.08 Material price variance= Actual Qty (Std pricec-Actual price) 7900 (0.07-0.08)= 79 U Material Qty variance= Std price (Std qty -Actual qty) 0.07(14210-7900)= 63.10 F Labour: Std labour hourrs allowed (490*1.75) 857.5 Std rate per hour: 12 Actual labour hours 430 Actual rate per hour: (5719/430) 13.3 Labouur rate variance= Actual horus (Std rate-Actual rate) 430 (12-13.30)= $559 U Labour Efficiency Variance= Std rate (Std hours-Actual hours) 12 (857.50 - 430)= 5130 F

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