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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
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 Chemical Conditioning Styling Washing Treatment 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 per unit Style per unit Perms per unit Hi-Lights 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. 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 Complete Style $ Perms Hi-Lights Total $
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