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
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 | Standard Unit Cost | |||||||
Shampoo | 2.2 | oz. | $ | 0.50 | per oz. | $ | 1.10 | ||
Water | 20 | gal. | $ | 0.04 | per gal. | 0.80 | |||
Direct labor | 1.3 | hr. | $ | 11.00 | per hr. | 14.30 | |||
During the month of July, Collins employees gave 400 baths. The actual results were 750 ounces of shampoo used (cost of $435.00), 7,000 gallons of water used (cost of $560), and labor costs for 340 hours (cost of $4,216). 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 | U | U |
Direct Material Quantity Variance | F | F |
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.)
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