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 Shampoo Quantity 1.7 oz. 15 gal. Water Direct labor 1.05 nr. Standard Rate $ 8.70 per oz. $ 0.05 per gal. $10.00 per hr. Standard Unit Cost $ 1.19 0.75 10.50 During the month of July, Collin's employees gave 350 baths. The actual results were 725 ounces of shampoo used (cost of $558.25) 6,500 gallons of water used (cost of $455), and labor costs for 290 hours (cost of $3,306). 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 (ie, zero variance).) Direct Material Price Variance Direct Material Quantity Variance Shampoo Water
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 Shampoo Quantity 1.7 oz. 15 gal. Water Direct labor 1.05 nr. Standard Rate $ 8.70 per oz. $ 0.05 per gal. $10.00 per hr. Standard Unit Cost $ 1.19 0.75 10.50 During the month of July, Collin's employees gave 350 baths. The actual results were 725 ounces of shampoo used (cost of $558.25) 6,500 gallons of water used (cost of $455), and labor costs for 290 hours (cost of $3,306). 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 (ie, zero variance).) Direct Material Price Variance Direct Material Quantity Variance Shampoo Water
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![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 Standard Rate
1.7 oz.
Shampoo
$ 0.70 per oz.
Water
15 gal.
Direct labor 1.05 nr.
$ 0.05 per gal.
$10.00 per hr.
During the month of July, Collin's employees gave 350 baths. The actual results were 725 ounces of shampoo used (cost of $558.25),
6,500 galions of water used (cost of $455), and labor costs for 290 hours (cost of $3,306).
Standard
Unit Cost
$ 1.19
0.75
10.50
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 (ie, zero variance).)
Direct Material Price Variance
Direct Material Quantity Variance
Shampoo
Water
Bandets](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3785c0d8-50ab-45bb-b986-40019a405599%2F4c2e7c93-5148-4401-9cb0-2ecfed84060d%2F3oss8n_processed.png&w=3840&q=75)
Transcribed Image Text: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 Standard Rate
1.7 oz.
Shampoo
$ 0.70 per oz.
Water
15 gal.
Direct labor 1.05 nr.
$ 0.05 per gal.
$10.00 per hr.
During the month of July, Collin's employees gave 350 baths. The actual results were 725 ounces of shampoo used (cost of $558.25),
6,500 galions of water used (cost of $455), and labor costs for 290 hours (cost of $3,306).
Standard
Unit Cost
$ 1.19
0.75
10.50
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 (ie, zero variance).)
Direct Material Price Variance
Direct Material Quantity Variance
Shampoo
Water
Bandets
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