Marx and Tyler provides hair-cutting services in the local community. In February, the business cut the hair of 210 clients, earned $5,000 in revenues, and incurred the following operating costs: 1(Click the icon to view the operating costs.) What was the cost of service to provide one haircut? Select the formula labels, then enter the amounts and compute the cost of service of providing one haircut. (Round your answer to the nearest cent.) (1) ÷ (2) = Unit haircut cost ÷ = 1: Data Table Hair Supplies Expense $750 Wages Expense 927 Utilities Expense 125 Depreciation Expense—Equipment 46 (1) Operating income Total number of haircuts Total operating costs Total revenues (2) Operating income Total number of haircuts Total operating costs Total revenues

Marx and Tyler provides hair-cutting services in the local community. In February, the business cut the hair of 210 clients, earned $5,000 in revenues, and incurred the following operating costs: 1(Click the icon to view the operating costs.) What was the cost of service to provide one haircut? Select the formula labels, then enter the amounts and compute the cost of service of providing one haircut. (Round your answer to the nearest cent.) (1) ÷ (2) = Unit haircut cost ÷ = 1: Data Table Hair Supplies Expense $750 Wages Expense 927 Utilities Expense 125 Depreciation Expense—Equipment 46 (1) Operating income Total number of haircuts Total operating costs Total revenues (2) Operating income Total number of haircuts Total operating costs Total revenues

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Marx

and

Tyler

provides hair-cutting services in the local community. In

February,

the business cut the hair of

210

clients, earned

$5,000

in revenues, and incurred the following operating costs:

1(Click

the icon to view the operating costs.)

What was the cost of service to provide one haircut?

Select the formula labels, then enter the amounts and compute the cost of service of providing one haircut. (Round your answer to the nearest cent.)

(1)

(2)

Unit haircut cost

1: Data Table

Hair Supplies Expense	$750
Wages Expense	927
Utilities Expense	125
Depreciation Expense—Equipment	46

(1)

Operating income

Total number of haircuts

Total operating costs

Total revenues

(2)

Operating income

Total number of haircuts

Total operating costs

Total revenues

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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