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E9-5 (Algo) Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Suds & Cuts is a local pet grooming shop owned by Collin Bark.
E9-5 (Algo) Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] 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 Shampoo Water Direct labor 1.6 hr. Standard Rate 2.8 oz. $ 0.40 per oz. 26 gal. $ 0.04 per gal. $12.00 per hr. Standard Unit Cost $ 1.12 1.04 19.20 During the month of July, Collin's employees gave 460 baths. The actual results were 780 ounces of shampoo used (cost of $405.60), 7,600 gallons of water used (cost of $608), and labor costs for 400 hours (cost of $5,400). 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
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