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 Unit Cost Quantity 2.8 oz.. $ 0.40 per oz. 26 gal. $ 0.04 per gal. 1.6 hr. Standard Rate Shampoo $ 1.12 Water 1.04 Direct labor $12.00 per hr. 19.20 During the month of July, Collin's employees gave 460 baths. The actual results were 780 ounces of shampoo used (cost of $405.60), 7,600 gallons of water used (cost of $608), and labor costs for 400 hours (cost of $5,400). Required: 1. Calculate Suds & Cuts direct materials variances for both shamp0o 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 Unit Cost Quantity 2.8 oz.. $ 0.40 per oz. 26 gal. $ 0.04 per gal. 1.6 hr. Standard Rate Shampoo $ 1.12 Water 1.04 Direct labor $12.00 per hr. 19.20 During the month of July, Collin's employees gave 460 baths. The actual results were 780 ounces of shampoo used (cost of $405.60), 7,600 gallons of water used (cost of $608), and labor costs for 400 hours (cost of $5,400). Required: 1. Calculate Suds & Cuts direct materials variances for both shamp0o and water for the month of July. 2. Calculate Suds & Cuts direct labor variances for the month of July.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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
Unit Cost
Quantity
2.8 oz.. $ 0.40 per oz.
26 gal. $ 0.04 per gal.
1.6 hr.
Standard Rate
Shampoo
$ 1.12
Water
1.04
Direct labor
$12.00 per hr.
19.20
During the month of July, Collin's employees gave 460 baths. The actual results were 780 ounces of shampoo used (cost of $405.60),
7,600 gallons of water used (cost of $608), and labor costs for 400 hours (cost of $5,400).
Required:
1. Calculate Suds & Cuts direct materials variances for both shamp0o and water for the month of July.
2. Calculate Suds & Cuts direct labor variances for the month of July.

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