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 2.4 oz. Standard Unit Cost $ 1.68 1.32 Standard Rate $ 0.70 per oz. 22 gal. $0.06 per gal. $11.00 per hr. Shampoo Water Direct labor 1.4 hr. 15.40 During the month of July, Collin's employees gave 420 baths. The actual results were 760 ounces of shampoo used (cost of $600.40). 7,200 gallons of water used (cost of $648), and labor costs for 360 hours (cost of $4,536). 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Suds & Cuts direct labor varlances for the month of July. (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.) Direct Labor Rate Variance Direct Labor Efficiency Variance ( Required 1 Required 2

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 2.4 oz. Standard Unit Cost $ 1.68 1.32 Standard Rate $ 0.70 per oz. 22 gal. $0.06 per gal. $11.00 per hr. Shampoo Water Direct labor 1.4 hr. 15.40 During the month of July, Collin's employees gave 420 baths. The actual results were 760 ounces of shampoo used (cost of $600.40). 7,200 gallons of water used (cost of $648), and labor costs for 360 hours (cost of $4,536). 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate Suds & Cuts direct labor varlances for the month of July. (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.) Direct Labor Rate Variance Direct Labor Efficiency Variance ( Required 1 Required 2

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Description: 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 dogbath given:StandardStandardStandard Rate

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.4P: Direct materials and direct labor variance analysis Faucet Industries Inc. manufactures faucets in a...

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Agus, Inc. uses standard costing for the accounting for its product. The budget officer provided the following standard data imposed by the top-level management concerning direct materials: Standard direct material is 3 per unit of the product Standard price is P5.00 per unit of direct material During the year, the company acquired on account 1,000 units of direct material at a total cost of P4,000. It also manufactured 150 products costing 750 direct materials. The journal entry to record the material usage variance will include a Group of answer choices a. Credit to Material Usage Variance at P1,200 b. Debit to Material Usage Variance at P1,500 c. Credit to Raw Materials at P3,000 d. Debit to Work in Process at P1,800
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Direct materials and direct labor, variance analysis; factory overhead cost variance analysis Route 66 Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 10.000 tires were as follows: Instructions Determine (a) the price variance, quantity variance, and total direct materials cost variance; (b) the rale variance, time variance, and total direct labor cost variance; and (c) Appendix: variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
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USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
The standard specifications for an electric motor manufactured by XYZ Electric Co. follow: Factory overhead rates are based on a normal 70% capacity and use the following flexible budget: The actual production was 2,500 motors, and factory overhead costs totaled $29,750. Required: Calculate the factory overhead variances using the two-variance method and the diagram format.
Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
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Auto Suppliers Inc. provides the following standard and actual costs for direct materials to produce 3,000 units of product: Standard and Actual Costs Data Quantity for actual production Price per lb. Standard 2,100 lbs. $5.70 Actual 2,900 lbs. $5.20 Determine the direct material cost variance. Group of answer choices -$3,110 favorable $3,110 unfavorable $4,560 unfavorable -$4,560 favorable
At Elkhardt, the standard price for the M640 electrical relay (a component used in the production of a commercial refrigeration unit) is $52. Standards call for 3.0 relays per unit of finished product. In July, the company purchased 145 relays for $8,700. The company used 108 relays in the production of 53 refrigeration units (4 relays were damaged in the installation process).Calculate the material price variance and the material quantity variance related to the M640 electrical relay. Indicate whether the variances are favorable or unfavorable. (Round intermediate calculations to 2 decimal places, e.g. 14.37 and final answers to 0 decimal places, e.g. 125. Enter all variances as a positive number.) Material Price Variance $enter a dollar amount unfavorable, favorable, or neither Material Quantity Variance $enter a dollar amount unfavaorable, favorabloe, or neither select an option