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Mr K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses) Activity 1: Welcome a guest and offer homemade herb tea (8 minutes) Activity 2: Wash and condition hair (8 minutes). Activity 3: Neck, shoulder, and back stress-release massage (8 minutes) Activity 4: Design the hairstyle and do the hair (19 minutes). Activity 5: Check out the guest (6 minutes). Three service employees ($1, 52, end $3) offer the services in a worker-paced line. The assignment of tasks to the service employees is the following S1 does activity 1, 52 does activities 2 and 3, and $3 does activities 4 and 5. a. What is the labor content? Labor content b. What is the average labor utilization? Note: Round your final answer to 2 decimal places. Average labor utilization Cost of direct labor minutes per customer c. At a wage rate of $30 per hour, what is the cost of direct labor per customer? Note: Round your final answer to 2 decimal places. of dest labor percent d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. cost of direct labor per customer per customer Returning to the three-worker scenario, Mr. K contemplates redesigning the assignment of tasks to servers. For this, Mr. Kis evaluating the reassignment of Activity 5 from $3 to St. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. customer

Mr K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses) Activity 1: Welcome a guest and offer homemade herb tea (8 minutes) Activity 2: Wash and condition hair (8 minutes). Activity 3: Neck, shoulder, and back stress-release massage (8 minutes) Activity 4: Design the hairstyle and do the hair (19 minutes). Activity 5: Check out the guest (6 minutes). Three service employees ($1, 52, end $3) offer the services in a worker-paced line. The assignment of tasks to the service employees is the following S1 does activity 1, 52 does activities 2 and 3, and $3 does activities 4 and 5. a. What is the labor content? Labor content b. What is the average labor utilization? Note: Round your final answer to 2 decimal places. Average labor utilization Cost of direct labor minutes per customer c. At a wage rate of $30 per hour, what is the cost of direct labor per customer? Note: Round your final answer to 2 decimal places. of dest labor percent d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. cost of direct labor per customer per customer Returning to the three-worker scenario, Mr. K contemplates redesigning the assignment of tasks to servers. For this, Mr. Kis evaluating the reassignment of Activity 5 from $3 to St. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. customer

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mr K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses) Activity 1: Welcome a guest and offer homemade herb tea (8 minutes) Activity 2: Wash and condition hair (8 minutes). Activity 3: Neck, shoulder, and back stress-release massage (8 minutes) Activity 4: Design the hairstyle and do the hair (19 minutes). Activity 5: Check out the guest (6 minutes). Three service employees (S1, S2, and $3) offer the services in a worker-paced line. The assignment of tasks to the service employees is the following: S1 does activity 1, 52 does activities 2 and 3, and 53 does activities 4 and 5 e. What is the labor content? Labor content b. What is the average labor utilization? Note: Round your final answer to 2 decimal places. Average labor utilization Cost of direct labor minutes per customer c. At a wage rate of $30 per hour, what is the cost of direct labor per customer? Note: Round your final answer to 2 decimal places. New cost of direct labor percent d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. New cost of direct labor per customer per customer e Returning to the three-worker scenario, Mr. K contemplates redesigning the assignment of tasks to servers. For this, Mr. Kis evaluating the reassignment of Activity 5 from $3 to St. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. per customer
Transcribed Image Text:Mr K's is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses) Activity 1: Welcome a guest and offer homemade herb tea (8 minutes) Activity 2: Wash and condition hair (8 minutes). Activity 3: Neck, shoulder, and back stress-release massage (8 minutes) Activity 4: Design the hairstyle and do the hair (19 minutes). Activity 5: Check out the guest (6 minutes). Three service employees (S1, S2, and $3) offer the services in a worker-paced line. The assignment of tasks to the service employees is the following: S1 does activity 1, 52 does activities 2 and 3, and 53 does activities 4 and 5 e. What is the labor content? Labor content b. What is the average labor utilization? Note: Round your final answer to 2 decimal places. Average labor utilization Cost of direct labor minutes per customer c. At a wage rate of $30 per hour, what is the cost of direct labor per customer? Note: Round your final answer to 2 decimal places. New cost of direct labor percent d. Mr. K considers hiring a new employee to help any one (and only one) of the servers without changing the tasks performed by each server. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. New cost of direct labor per customer per customer e Returning to the three-worker scenario, Mr. K contemplates redesigning the assignment of tasks to servers. For this, Mr. Kis evaluating the reassignment of Activity 5 from $3 to St. What will be the new cost of direct labor? Note: Round your final answer to 2 decimal places. per customer
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