E34-4 Calculating Direct Materials and Direct Labor Variances 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: LO34-3, 34-4 Standard QuantityStandard Rate Standard Unit Cost Shampoo Water Direct labor SO.10 per oz. S0.05 per gal. $9.00 per hr $0.20 1.00 6.75 2 oz. 20 gal. 0.75 hr During the month of July. Collin's employees gave 360 baths. The actual results were 725 ounces of shampoo used (cost of SI16. 6.500 gallons of water used (cost of S455), and labor costs for 230 hours (cost of $2.300). Required 1. Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July 2. Calculate Suds & Cuts direct labor variances for the month of July. 3. Identify a possible cause of each variance