Suds & Cuts is a local pet grooming shop owned by Collin Bark. Collin has...
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Accounting
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 | 1.4 | oz. | $ | 0.40 | per oz. | $ | 0.56 | ||
Water | 12 | gal. | $ | 0.04 | per gal. | 0.48 | |||
Direct labor | 0.9 | hr. | $ | 9.00 | per hr. | 8.10 | |||
During the month of July, Collins employees gave 320 baths. The actual results were 710 ounces of shampoo used (cost of $340.80), 6,200 gallons of water used (cost of $434), and labor costs for 260 hours (cost of $2,756). Required: 1. Calculate Suds & Cuts direct materials variances 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" for favorable, "U" for unfavorable.)
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