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 RateStandard Unit CostShampoo2.1oz. $0.40per oz. $0.84Water19gal. $0.06per gal. 1.14Direct labor1.25hr. $11.00per 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 $4,026). Required:1. Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July.2. Calculate Suds & Cuts direct labor variances for the month of July. Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has prepared the following standard cost card for each dogbath given:StandardStandardQuantity2.1 oz.Standard RateUnit Cost$ 0.84$ 0.40 per oz.19 gal. $ 0.06 per gal.$11.00 per hr.ShampooWater1.14Direct labor 1.25 hr.13.75During 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 1Required 2Calculate Suds & Cuts direct materials variances for both shampoo and water for the month of July. (Round your answers to 2decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance).)ShampooWaterDirect Material Price VarianceDirect Material Quantity Variance< Required 1Required 2<>

Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…

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FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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	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.

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 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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