eBook Show Me How Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8.00 per guest check-in, $16.00 per room cleaning, and $5.00 per served meal (not including food). Tara Lawson visited the hotel for a 5-night stay. Tara had 7 meals in the hotel during the visit. Determine the total activity-based cost for Lawson's visit during the month. Round your answer to the nearest cent.

Transformations Hair Salon uses an activity-based costing system 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 information provided, determine the cost of services for each of the following services provided by the salon:   HairWashing 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   Round your answers to two decimal places, if necessary. Haircut $ per unit Complete style $ per unit Perm $ per unit Highlights $ per unit b.  If the company budgets 10,000 haircuts, 4,000 complete styles, 3,500 perms, and 5,500 highlights, determine the budget for cost of services. Services Total Costs Haircut $ Complete style   Perm   Highlights   Total $

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Part 3:  Activity-Based Costing Similarly, Mr. Suncat has a couple of questions for you regarding the activity-based costing method.  He has provided the following additional information:           Cost Pools         Cost Drivers         Estimated Overhead       Expected Use of Cost Drivers Expected Use of Cost Driver:  Basic Wedding Cake Expected Use of Cost Driver Multi-Layer Wedding Cake Expected Use of Cost Driver Custom Wedding Cake Initial customer meeting Number of hours spent with customer $15,000 4.5 hours 0.75 hour 1.25 hours 2.5 hours Purchasing ingredients Number of purchase requisitions $15,000 1000 requisitions 150 requisitions 300 requisitions 550 requisitions Making and baking the wedding cakes Direct Labor hours $40,000 5.5 hours 1.25 hour 2 hours 2.25 hours Decorating the wedding cakes Direct Labor hours $70,000 9.5 hours 1.75 hours 3 hours 4.75 hours Final customer meeting and cake…

The Grand Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $9 per guest check-in, $15 per room cleaning, and $5 per served meal (not including food). Nikita Johnson visited the hotel for a three-night stay. Nikita had three meals in the hotel during her visit. Determine the total activity-based cost for Nikita’s visit.

Regression, activity-based costing, choosing cost drivers. Sleep Late, a large hotel chain, has been using activity-based costing to determine the cost of a night’s stay at their hotels. One of the activities, “Inspection,” occurs after a customer has checked out of a hotel room. Sleep Late inspects every 10th room and has been using “number of rooms inspected” as the cost driver for inspection costs. A signicant component of inspection costs is the cost of the supplies used in each inspection.

Activity-based costing: selling and administrative expenses Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate of 20 per sales order, and the customer return activity has an activity rate of 100 per return. Jungle Junior sold 2,500 swing sets, which consisted of 750 orders and 80 returns. Determine (A) the total and (B) the per-unit sales order processing and customer return activity cost for swing sets.

Scattergraph Method Refer to the information for Luisa Crimini above. Required: CONCEPTUAL CONNECTION Prepare a scattergraph based on Luisas data. Use monthly cost for the vertical axis and number of appointments for the horizontal axis. Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of tanning services and the number of appointments? Use the following information for Exercises 3-44 through 3-46: Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows:

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