Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. suds & cuts is a local pet grooming shop owned

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

Free

50.1K

Verified Solution

Question

Accounting

Suds & Cuts is a local pet grooming shop owned by CollinBark. Collin has prepared the following standard cost card for eachdog bath given:

Standard QuantityStandard RateStandard Unit Cost
Shampoo2.8oz.$0.40per oz.$1.12
Water26gal.$0.04per gal.1.04
Direct labor1.6hr.$12.00per hr.19.20


During the month of July, Collin’s employees gave 460 baths. Theactual results were 780 ounces of shampoo used (cost of $405.60),7,600 gallons of water used (cost of $608), and labor costs for 400hours (cost of $5,400).

Required:
1. Calculate Suds & Cuts direct materialsvariances 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" forfavorable, "U" for unfavorable.)



2. Calculate Suds & Cuts direct laborvariances for the month of July. (Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable.Round your answers to nearest dollar amount.)

Answer & Explanation Solved by verified expert
4.0 Ratings (590 Votes)

Particulars Standard actual
qty rate amount qty rate amount
Material - shampoo(2.8*460) 1288 0.4 515.2 780 0.52 405.6
Material - Water (26*460) 11960 0.04 478.4 7600 0.08 608
Labour - (1.6*460) 736 12 8832 400 13.5 5400
Shampoo
Direct material price variance
( std price- actual price)*actual qty = (0.4-0.52)*780
= 93.6 (U)
direct material qty variance
( std qty - actual qty)*std price = (1288-780)*0.4
=203.2 (F)
Water
Direct material price variance
(std price - actual price)*actual qty =(0.04-0.08)7600
=304(U)
direct material qty variance
( std qty- actual qty)*std price = (11960-7600)*0.04
=174.4(F)
Labour
direct labour rate variance
( std rate - actual rate)*actual hour =(12-13.5)*400
=600(U)
Direct labour efficiency variance =(std hour-actual hour)*std rate
=(736-400)*12
=4032(F)

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Determine all possible Jordan canonical forms J for a matrix of order 6 whose minimal...

Statistics
1.2K views

Some researchers in child development wanted to develop ways to increase the spatial-temporal reasoning of preschool...

Calculus
1.2K views

4 Prove the statement using definition of a limit lim x 5x 8 2 x...

Calculus
1.2K views

30 Part 5 of 5 Since T 75 110e 1 30 In 15 22 t...

Algebra
1.2K views

You may need to use the appropriate technology to answer this question Consider the experimental...

Accounting
1.2K views

Required: Prepare a statement of Cash Flows For Year Ended December 31, 2020 Use Proper...

Accounting
1.2K views

A company reports the following information as of December 31st.. Ignoring income taxes, what amount...

Accounting
1.2K views

The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the...

Accounting
1.2K views

QUESTION 1 On 7 November 2019, El Hadid Bhd issued a prospectus inviting...

Accounting
1.2K views

Peavey Enterprises purchased a depreciable asset for $22,000 on April 1. Year 1. The asset...

Accounting
1.2K views

Which of the following is best described as a liquidity ratio? Return on assets O...

Accounting
1.2K views

Menlo Company distributes a single product. The company's sales and expenses for last month follow:...