Hairy Pop-Ins is a dog grooming service in Surrey, BC. They consider convenience and customer service to be of the utmost importance to their clients and insist on driving to their homes when they're having a 'ruff day. In the month of May, a total of 5,000 dogs were groomed using 1,000 litres of shampoo and 12,000 hours of labour. Total labour costs amounted to $ 504,000. Hairy Potter, the company's controller, thought that each dog would use 0.15 litres of shampoo and 3 hours of labour. He expected that the company would be able to buy shampoo at a rate of $4.00 per litre and pay workers at a rate of $ 45 per hour. Due to his poor estimates, Hairy is now 'in the dog- house', so to speak a. Calculate the material quantity variance: Method 1 - Formulas MQV = SP X (AQ - SQ) Method 2 - Visual Diagram AQ x SP SQ x SP Material Quantity Variance b. Calculate the labour rate variance. Method 1 - Formulas LRV = AH X (AR-SR) Method 2 - Visual Diagram AH XAR AH X SR + + Labour Rate Variance