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Exercise 6.12 Process Costing, Service Organization A local barbershop cuts the hair of 1,200 customers per month. The clients are men, and the burc. bers

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Exercise 6.12 Process Costing, Service Organization A local barbershop cuts the hair of 1,200 customers per month. The clients are men, and the burc. bers offer no special styling. During the month of May, 1,200 customers were serviced. The ce of haircuts includes the following: Cost Direct labor Direct materials Overhead S 9,000 1,000 2,000 $12,000 Total Required: 1. Explain why process costing is appropriate for this haircutting operation 2. Calculate the cost per haircut. 3. Can you identify some possible direct materials used for this haircutting service? Is the usag of direct materials typical of services? If so, provide examples of services that use diredt materials. Can you think of some services that would not use direct materials

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