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The Beauty Beyond Words Salon uses an activity-based costing system in its beauty salon to...

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Accounting

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 $4.00
Conditioning $3.50
Chemical treatment $25.00
Styling $10.00

Hair Washing Conditioning Chemical Treatment Styling
Haircut 1 1 0 0
Complete style 1 1 0 1
Perm 2 3 1 1
Highlights 3 4 2 1

Calculate the cost of services for a haircut.

a.

$7.50
b.

$4.00
c.

$3.50
d.

$11.50

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