1. 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