The Beauty Beyond Words Salon uses an activity-based costing system in its beaut

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.
a) $2.00
b) $5.50
c) $3.00
d) $15.50

Explanation / Answer

1*2.50 +1*3.00= 5.50 b)

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