Please answer all and show work. Suds & Cuts is a local pet grooming shop owned

Question

Please answer all and show work.

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 Shampoo Water Direct labor QuantityStandard Rate 1.4 oz. $ 0.40 per oz. 12 gal. 0.04 per gal 0.9 hr. 9.00 per hr Standard Unit Cost 0.56 0,48 8.10 During the month of July, Collin's employees gave 320 baths. The actual results were 710 ounces of shampoo used (cost or $340.80), 6,200 gallons of water used (cost of $434), and labor costs for 260 hours (cost of $2,756) 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

Explanation / Answer

1.

Direct Material price variance = Actual quantity * (actual price - standard price)

Direct material quantity variance = Standard price * (actual quantity - standard quantity)

2.

Direct labour rate variance = Actual hours * (actual rate - standard rate)

Direct labour efficiency variance = Standard rate * (actual hours - standard hours)

Shampoo Water Direct Material Price Variance 710 * [(340.80/710)-0.40] = 56.8 Unfavourable 6,200 * [(434//6,200)-0.04] = 186 Unfavourable Direct Material quantity variance 0.4 * [710-(320*1.4)] = 104.8 Unfavourable 0.04 * [6,200-(320*12)] = 94.4 Unfavourable

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