4. 2.00 points Suds & Cuts is a local pet grooming shop owned by Collin Bark. Co

Question

4. 2.00 points 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 Standard Shampoo Water Direct labor 2.3 oz. $ 0.60 per oz. 21 gal. $ 0.05 per gal 1.35 hr. $11.00 per hr S 1.38 1.05 14.85 During the month of July, Collin's employees gave 410 baths. The actual results were 755 ounces of shampoo used (cost of $520.95), 7,100 gallons of water used (cost of $639), and labor costs for 350 hours (cost of $4,375) 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 Materal 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 Water Std quantity allowed 943 8610 (410*2.3) (410*21) Std price per unit 0.6 0.05 Actual Quantity 755 7100 Actual price per unit 0.69 0.09 (520.95/755) (639/7100) Material Price variance: Actual Qty (Std price-Actual price) Shampoo: 755 (0.60-0.69)=   $ 67.95 Unfav Water:   7100 (0.05 -0.09)= $ 284 Unfav Material Quantity Variance: Std price (Std quantity-Actual Quanatity) Shampoo:   0.60 (943-755) = $ 112.80 Fav Water: 0.05 (8610-7100) = $ 75.50 fav Shampoo Water Price Variance 67.95 U 284 U Quantity Variance 112.80 F 75.50 F Std labour hours allowed (410*1.35 hr): 553.50 hours Std rate per hour: 11.00 per hour Actual hours worked: 350 hours Actual rate per hour (4375/350)= $12.50 pere hour Labour rate variance: Actual hours(Std rate-Actual rate) 350 (11-12.50)= $ 525 Unfav Labour Efficiency Variance: Std rate (Std hours-Actual Hours) 11.00 (553.50 -350)= $ 2238.50 Fav Labour rate 525 U Labour Efficiency 2238.50 F

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