[dkirkman]

QUESTION:::20. 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 activity as follows:

Activity Activity Rate
Hair Washing $1.50
Conditioning $2.00
Chemical Treatment $20.00
Styling $10.00

(a) Using the following information determine the cost of services for each of the following services provided by the salon:

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

(b) If the company budgets 10,000 hair cuts, 4,000 complete styles, 3,500 perms, and 5,500 hi-lights, determine their budget for cost of services.

ANSWER I GOT:::

a.)Hair cut=3.50
Complete style=13.50
Perms=39.00
Hi-Lights=62.50


b.) 3.50 *10000=35000 hair cuts
13.50 *4000= 54000 complete styles
39.00*3500=136500 Perms
62.50*5500=343750 Hi Lights


Total budget=569,250

[Nazib]

Yeah its right