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 Quantity Standard Rate Unit Cost Water Direct labor 2.2 oz. $ 0.50 per oz. 20 gal. 0.04 per gal 1.3 hr. $11.00 per hr $ 1.10 0.80 14.30 During the month of July, Collin's employees gave 400 baths. The actual results were 750 ounces of shampoo used (cost of $435.00), 7,000 gallons of water used (cost of $560), and labor costs for 340 hours (cost of $4,216). 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

Direct materials price variance: Shampoo 60 U =435-(750*0.5) Water 280 U =560-(7000*0.04) Direct materials quantity variance: Shampoo 65 F =0.5*(750-400*2.2) Water 40 F =0.04*(7000-400*20) 2 Direct labor rate variance 476 U =4216-(340*11) Direct labor efficiency variance 1980 F =11*(340-400*1.3)

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