Business, 25.02.2020 18:03, PerfectMagZ

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.

Answers: 1

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Suds & Cuts is a local pet grooming shop owned by Collin Bark.

Collin has prepared...