Question
The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to determine the cost of services. The salon has determined the
The Beauty Beyond Words 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 | $4.00 |
| Conditioning | $3.50 |
| Chemical treatment | $25.00 |
| Styling | $10.00 |
| 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 |
Calculate the cost of services for a haircut.
| a. | $7.50 | |
| b. | $4.00 | |
| c. | $3.50 | |
| d. | $11.50 |
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Business Accounting
Authors: Frank Wood, Alan Sangster
7th Edition
0273619829, 9780273619826
