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:


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.
2. Calculate Suds & Cuts direct labor variances for the month of July.
3. Identify a possible cause of eachvariance.


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  • CreatedFebruary 27, 2015
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