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 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | 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.
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