Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am having trouble finding the total direct and indirect cost. please show breakdown. Thank you! Salon de Beauty, a local hair salon, incurred the

I am having trouble finding the total direct and indirect cost. please show breakdown. Thank you!

Salon de Beauty, a local hair salon, incurred the following costs last month. (Hint: Treat Salon utilities as Variable cost)

Salon rent $ 2,300
Salon utilities (electric and water) $ 870
Hairstylists salaries $ 5,500
Hairstylists commissions (a percentage of sales) $ 2,700
Depreciation on fixtures and equipment $ 830
Shampoo and conditioner (only a small amount is used on each customer) $ 380
Insurance $ 1,100
Advertising $ 1,200
Store managers salary $ 3,000
Hair dye and perm kits (each dye job or perm uses one kit) $ 440

Calculate each of the following, where the cost object is customers served: a. Total variable costs. $4390 b. Total fixed costs. $13930 c. Total direct costs. d. Total indirect costs.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Outsourcing Dilemma Whats Best For Internal Auditing

Authors: Larry E. Rittenberg, Institute Of Internal Auditors Research Foundation, Lee A. Campbell

1st Edition

0894133845, 978-0894133848

More Books

Students also viewed these Accounting questions