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

QUESTION

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 QuantityStandardRateStandardUnit Cost Shampoo2 oz.$0.10per oz.$0.20 Water20 gal.$0.05per gal.1.00 Direct labor0.75 hr.$9.00per hr.6.75 During the month of July, Collin’s employees gave 360 baths. The actual results were 725 ounces of shampoo used (cost of $116), 6,500 gallons of water used (cost of $455), and labor costs for 230 hours (cost of $2,300).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.)

ANSWER:

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