Suds & Cuts is a local pet grooming shop owned by CollinBark. Collin has prepared the following standard cost card for eachdog bath given:
| Standard Quantity | | Standard Rate | Standard Unit Cost |
| Shampoo | 2.8 | oz. | | $ | 0.40 | per oz. | | $ | 1.12 |
| Water | 26 | gal. | | $ | 0.04 | per gal. | | | 1.04 |
| Direct labor | 1.6 | hr. | | $ | 12.00 | per hr. | | | 19.20 |
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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.)
