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: ActivityActivity RateHair Washing$2.50Conditioning$3.00Chemical Treatment$25.00Styling$10.00 Hair WashingConditioningChemical TreatmentStylingHair cut1100Complete Style1101Perms2311Hi-Lights3421 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

Cost per Hair cut = Activities x Rate per activity…

Answered: The It's All About Hair Salon uses an…

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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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

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

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