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 Standard Quantity 2.1 oz. Standard Rate Unit Cost $ 0.84 $ 0.40 per oz. 19 gal. $ 0.06 per gal. $11.00 per hr. Shampoo Water 1.14 Direct labor 1.25 hr. 13.75 During the month of July, Collin's employees gave 390 baths. The actual results were 745 ounces of shampoo used (cost of $372.50), 6,900 gallons of water used (cost of $552), and labor costs for 330 hours (cost of $4,026). 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 variances 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
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 Standard Quantity 2.1 oz. Standard Rate Unit Cost $ 0.84 $ 0.40 per oz. 19 gal. $ 0.06 per gal. $11.00 per hr. Shampoo Water 1.14 Direct labor 1.25 hr. 13.75 During the month of July, Collin's employees gave 390 baths. The actual results were 745 ounces of shampoo used (cost of $372.50), 6,900 gallons of water used (cost of $552), and labor costs for 330 hours (cost of $4,026). 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 variances 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
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 3EB: Use the following information to create a standard cost card for production of one photography drone...
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Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following
Standard Quantity | Standard Rate | Standard Unit Cost | |||||||
Shampoo | 2.1 | oz. | $ | 0.40 | per oz. | $ | 0.84 | ||
Water | 19 | gal. | $ | 0.06 | per gal. | 1.14 | |||
Direct labor | 1.25 | hr. | $ | 11.00 | per hr. | 13.75 | |||
During the month of July, Collin’s employees gave 390 baths. The actual results were 745 ounces of shampoo used (cost of $372.50), 6,900 gallons of water used (cost of $552), and labor costs for 330 hours (cost of $4,026).
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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