Question
Question Content Area Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined
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Question Content Area
Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the costs of services by activity as follows:
Activity
Activity Rate
Hair washing $1.50 Conditioning $2.00 Chemical treatment $20.00 Styling $10.00
a. Using the information provided, determine the cost of services for each of the following services provided by the salon:
Hair Washing Conditioning Chemical Treatment Styling Haircut 1 1 0 0 Complete style 1 1 0 1 Perm 2 3 1 1 Highlights 3 4 2 1
Round your answers to two decimal places, if necessary.
Hair Cuts $fill in the blank 1 per unit Style $fill in the blank 2 per unit Perms $fill in the blank 3 per unit Hi-Lights $fill in the blank 4 per unit
b. If the company budgets 10,000 haircuts, 4,000 complete styles, 3,500 perms, and 5,500 highlights, determine the budget for cost of services.
Services Total Costs Hair Cut $fill in the blank 5 Complete Style $fill in the blank 6 Perms $fill in the blank 7 Hi-Lights $fill in the blank 8 Total $fill in the blank 9
Question Content Area
Transformations Hair Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the costs of services by activity as follows:
| Activity | Activity Rate |
| Hair washing | $1.50 |
| Conditioning | $2.00 |
| Chemical treatment | $20.00 |
| Styling | $10.00 |
a. Using the information provided, determine the cost of services for each of the following services provided by the salon:
| Hair Washing | Conditioning | Chemical Treatment | Styling | |
| Haircut | 1 | 1 | 0 | 0 |
| Complete style | 1 | 1 | 0 | 1 |
| Perm | 2 | 3 | 1 | 1 |
| Highlights | 3 | 4 | 2 | 1 |
Round your answers to two decimal places, if necessary.
| Hair Cuts | $fill in the blank 1 per unit |
| Style | $fill in the blank 2 per unit |
| Perms | $fill in the blank 3 per unit |
| Hi-Lights | $fill in the blank 4 per unit |
b. If the company budgets 10,000 haircuts, 4,000 complete styles, 3,500 perms, and 5,500 highlights, determine the budget for cost of services.
| Services | Total Costs |
| Hair Cut | $fill in the blank 5 |
| Complete Style | $fill in the blank 6 |
| Perms | $fill in the blank 7 |
| Hi-Lights | $fill in the blank 8 |
| Total | $fill in the blank 9 |
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Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
978-0324787351
