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 Use the above information to answer multiple choice questions 17 and 18. 17. Determine the cost of services for a hair cut. A. $2.00 B. $5.50 C. $3.00 D. $10.00

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 Use the above information to answer multiple choice questions 17 and 18. 17. Determine the cost of services for a hair cut. A. $2.00 B. $5.50 C. $3.00 D. $10.00

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 2E

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Part 3: Activity-Based Costing Similarly, Mr. Suncat has a couple of questions for you regarding the activity-based costing method. He has provided the following additional information: Cost Pools Cost Drivers Estimated Overhead Expected Use of Cost Drivers Expected Use of Cost Driver: Basic Wedding Cake Expected Use of Cost Driver Multi-Layer Wedding Cake Expected Use of Cost Driver Custom Wedding Cake Initial customer meeting Number of hours spent with customer $15,000 4.5 hours 0.75 hour 1.25 hours 2.5 hours Purchasing ingredients Number of purchase requisitions $15,000 1000 requisitions 150 requisitions 300 requisitions 550 requisitions Making and baking the wedding cakes Direct Labor hours $40,000 5.5 hours 1.25 hour 2 hours 2.25 hours Decorating the wedding cakes Direct Labor hours $70,000 9.5 hours 1.75 hours 3 hours 4.75 hours Final customer meeting and cake…
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procedure for the following lab procedures, given a total lab cost of $1.25 million and an average hourly lab tech rate of $15 (to calculate the RVU, divide the total sample expense by the com- Job-Order Costing Self-Quiz Problem Cost per Using the weighted procedure method of setting rates, calculate the relative value and mon denominator of .25): Projected Labor Supply Procedure Volume in Minutes Expense ($) Amylase 4,000 15 .75 Bleeding time 5,000 12 .50 Uric acid 3,000 10 .50 Platelet count 7,800 9. .25 Hematocrit 7,600 8. .25
Compute the cost that is assigned to the car wheels and truck wheels product lines using an activity-based costing system, given the following information. Use of Cost Drivers per Product Number of setups Direct labor hours Number of inspections Setting up machines Assembling Inspection Total cost assigned LA LA $ +A Car 200 39,000 100 Truck 800 33,000 1,100 Car Wheels ta $ tA $ Truck Wheels