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Beau Salon provides facial spa and skincare services. The salon uses two measures of its activity: Customers and Service Hours. Additional information on costs and
Beau Salon provides facial spa and skincare services. The salon uses two measures of its activity: Customers and Service Hours. Additional information on costs and level of activity are below:
Budget for salon expenses:
Fixed Cost per Month | $18,700 |
Variable Cost per Customer | $100 per customer |
Variable Cost per Service Hour | $15 per service hour |
Actual salon expenses for the month of February are $41,200.
Budget | Actual | |
Number of customers in February | 120 | 107 |
Number of service hours in February | 500 | 547 |
What is the Activity Variance for salon expenses in February?
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