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Jan Holliday Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studios are located in
Jan Holliday Dance Studios is a chain of 45 wholly owned dance studios that offer private lessons in ballroom dancing. The studios are located in various cities throughout the southern and southeastern states. Holliday offers a set of 12 private lessons; students may pay for the lessons one at a time, but each student is required to enroll for at least a 12-lesson plan. The 20- 40-, and 100-lesson plans offer savings. Each dance instructor is paid a small salary plus a commission based on the number of dance lessons provided. Required: 2. Indicate whether the cost should be classified as (a) direct, (b) indirect, (c) variable, and (d) fixed with respect to the following list for the cost objects. Direct Cost or Indirect Cost Variable Cost or Fixed Cost Studios as the Cost Object 1. Each dancing instructor's salary 2. Manager's salary 3. Music tapes used in instruction 4. Utilities for the studio 5. Part-time studio receptionist 6. Planning and development materials sent from the home office 7. Free lessons given by each studio as a promotion 8. Regional TV and radio advertisements placed several times a year Direct Cost or Indirect Cost Variable Cost or Fixed Cost Lessons as the Cost Object 1. Each dancing instructor's salary 2. Manager's salary 3. Music tapes used in instruction 4. Utilities for the studio 5. Part-time studio receptionist 6. Planning and development materials sent from the home office 7. Free lessons given by each studio as a promotion 8. Regional TV and radio advertisements placed several times a year
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