The Beauty Beyond Words Salon uses an activity-based costing system in its beaut
ID: 2385198 • Letter: T
Question
The Beauty Beyond Words 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 activity 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
Calculate the cost of services for a hair cut.
Question 14 options:
$2.00
$5.50
$3.00
$15.50
Explanation / Answer
Cost for services for hair cut = 1*2.50 + 1*3.00 + 0*25.00 + 0*10.00 = 2.50 + 3.00 + 0+ 0 = $5.50 Answer: $5.50
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