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 1.2 oz. Standard Rate Unit Cost Shampoo $ 0.24 $0.20 per oz. 10 gal. $0.04 per gal. $9.00 per hr. Water 0.40 Direct labor 0.8 hr. 7.20 During the month of July, Collin's employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448). 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 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, and "None" for no effect (i.e., zero variance).) Shampoo Water Direct Material Price Variance Direct Material Quantity Variance < Required 1 Required 2 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 1.2 oz. 10 gal. $0.04 per gal. 0.8 hr. $9.00 per hr. Standard Standard Rate Unit Cost Shampoo Water $ 0.24 0.40 $0.20 per oz. Direct labor 7.20 During the month of July, Collin's employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448). 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 1.2 oz. Standard Rate Unit Cost Shampoo $ 0.24 $0.20 per oz. 10 gal. $0.04 per gal. $9.00 per hr. Water 0.40 Direct labor 0.8 hr. 7.20 During the month of July, Collin's employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448). 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 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, and "None" for no effect (i.e., zero variance).) Shampoo Water Direct Material Price Variance Direct Material Quantity Variance < Required 1 Required 2 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 1.2 oz. 10 gal. $0.04 per gal. 0.8 hr. $9.00 per hr. Standard Standard Rate Unit Cost Shampoo Water $ 0.24 0.40 $0.20 per oz. Direct labor 7.20 During the month of July, Collin's employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448). 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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 cost card for each dog bath given:

	Standard Quantity		Standard Rate	Standard Unit Cost
Shampoo	1.2	oz.		$	0.20	per oz.	$	0.24
Water	10	gal.		$	0.04	per gal.		0.40
Direct labor	0.8	hr.		$	9.00	per hr.		7.20

During the month of July, Collin’s employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00), 6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448).

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.

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
1.2 oz.
Standard Rate Unit Cost
Shampoo
$ 0.24
$0.20 per oz.
10 gal. $0.04 per gal.
$9.00 per hr.
Water
0.40
Direct labor
0.8 hr.
7.20
During the month of July, Collin's employees gave 350 baths. The actual results were 700 ounces of shampoo used (cost of $182.00),
6,000 gallons of water used (cost of $420), and labor costs for 240 hours (cost of $2,448).
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 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, and "None" for no
effect (i.e., zero variance).)
Shampoo
Water
Direct Material Price Variance
Direct Material Quantity Variance
< Required 1
Required 2

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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