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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 |
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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.
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