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 Standard Shampoo Water Direct labor 1.8 oz. $ 0.10 per oz. 16 gal. 0.05 per gal 1.1 hr. $10.00 per hr S 0.18 0.80 11.00 During the month of July, Collin's employees gave 360 baths. The actual results were 730 ounces of shampoo used (cost of $131.40), 6,600 gallons of water used (cost of $528), and labor costs for 300 hours (cost of $3,480) 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 material price variance = (standard price - actual price) * actual quantity

Shampoo

Direct material price variance = ($0.10 - $0.18) * 730 ounces

= ($58.4) unfavourable

Water

Direct material price variance = ($0.05 - $0.08) * 6600 gallons

= ($198) unfavourable.

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

Shampoo

Direct material quantity variance = (648 ounces - 730 ounces) * $0.10

= ($8.2) unfavourable

Water

Direct material quantity variance = (5760 gallons - 6600 gallons) * $0.05

= ($42) unfavourable.

Direct labor rate variance = (standard rate - actual rate ) * actual hours

= ($10 - $11.6) * 300 hours

= ($480) unfavourable

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

= (300 hours - 396 hours) * $10

= ($960) unfavourable.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.