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 1.3 oz. $ 0.30 per oz. 11 gal. $0.04 per gal Unit Cost 0.44 7.65 Shampoo S 0.39 Direct labor 0.85 hr. $ 9.00 per hr During the month of July, Collin's employees gave 310 baths. The actual results were 705 ounces of shampoo used (cost of $232.65), 6,100 gallons of water used (cost of $427), and labor costs for 250 hours (cost of $2,600) 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.) 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 Material Std qty allowed for actual output (310*1.3): 403 Std price per unit 0.3 Actual Quantity used 705 Actual price per unit (232.65/705) 0.33 Material price variance=Actual Qty (Std price -Actual price ) 705 (0.30 -0.33)= $ 21.15U Material Quantity Variance= Std rate (Sstd quantity -Actual Quantity) 0.30 (403-705) = $ 90.60 U Water Material Std Quantity Allowed for actual output (310*11): 3410 Std price per gallom 0.04 Actual Gallon used 6100 Actual pricec per gallon (427/6100) 0.07 Material price variance=Actual Qty (Std price -Actual price ) 6100 (0.04-0.07)= $ 183 U Material Quantity Variance= Std rate (Sstd quantity -Actual Quantity) 0.04 (3410-6100)= $ 107.60 U Labour: Std hours allowed for actual output (310*0.85): 263.5 Std rate per hour 9 Actaul labour hours 250 Actual labour rate per hour (2600/250) 10.4 Labour rate variancec= Actual labour hours (Std rate-Actual rate) 250 (9-10.40)= $ 350 U Labour efficiency Vvariance= Std rate (Std hours-Actual Hours) 9.00 (263.50-250)= 121.50 F

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