FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:
Shampoo
Water
Direct labor
Standard Quantity
2.5
23
1.45
ounces
gallons
hour
Standard Rate
$0.10 per ounces
$0.04 per gallons
$11.00 per hour
During the month of July, Collin's employees gave 430 baths. The actual results were 765 ounces of shampoo used (cost of $153.00),
7,300 gallons of water used (cost of $584), and labor costs for 370 hours (cost of $4,551).
Required 1 Required 2
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.
Direct Material Price Variance
Direct Material Quantity Variance
Standard Unit Cost
$0.25
0.92
15.95
Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July.
Note: Round your intermediate calculations and final 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
< Required 1
Water
Required 2 >
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Transcribed Image Text: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: Shampoo Water Direct labor Standard Quantity 2.5 23 1.45 ounces gallons hour Standard Rate $0.10 per ounces $0.04 per gallons $11.00 per hour During the month of July, Collin's employees gave 430 baths. The actual results were 765 ounces of shampoo used (cost of $153.00), 7,300 gallons of water used (cost of $584), and labor costs for 370 hours (cost of $4,551). Required 1 Required 2 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. Direct Material Price Variance Direct Material Quantity Variance Standard Unit Cost $0.25 0.92 15.95 Calculate Suds & Cuts, direct materials variances for both shampoo and water for the month of July. Note: Round your intermediate calculations and final 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 < Required 1 Water Required 2 >
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