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 | 1.9 | ounces | $0.20 | per ounces | $0.38 |
Water | 17 | gallons | $0.04 | per gallons | 0.68 |
Direct labor | 1.15 | hour | $10.00 | per hour | 11.50 |
During the month of July, Collins employees gave 370 baths. The actual results were 735 ounces of shampoo used (cost of $205.80), 6,700 gallons of water used (cost of $536), and labor costs for 310 hours (cost of $3,658).
Required:
1. Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July.
Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July.
Note: Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).
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2. Calculate Suds & Cuts, direct labor variances for the month of July.
Calculate Suds & Cuts, direct labor variances for the month of July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your answers to nearest dollar amount.
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