The It's All About 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 activty as follows:   Activity Activity Rate Hair Washing $2.50 Conditioning $3.00 Chemical Treatment $25.00 Styling $10.00       Hair Washing Conditioning Chemical Treatment Styling Hair cut 1 1 0 0 Complete Style 1 1 0 1 Perms 2 3 1 1 Hi-Lights 3 4 2 1     Determine the cost of services for a perm.     A. $49.00   B. $5.50   C. $54.00   D. $29.00

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter4: Job-order Costing And Overhead Application
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Problem 36E: Job-Order Costing versus Process Costing a. Hospital services b. Custom cabinet making c. Toy...
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*ACTIVITY BASED COSTING*

The It's All About 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 activty as follows:

 

Activity
Activity Rate
Hair Washing
$2.50
Conditioning
$3.00
Chemical Treatment
$25.00
Styling
$10.00

 

 
 
Hair Washing
Conditioning
Chemical Treatment
Styling
Hair cut
1
1
0
0
Complete Style
1
1
0
1
Perms
2
3
1
1
Hi-Lights
3
4
2
1

 

 

  1. Determine the cost of services for a perm.
     
      A.
    $49.00
      B.
    $5.50
      C.
    $54.00
      D.
    $29.00
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