Salon de Beauty, a local hair salon, incurred the following costs last month. (Hint: Treat Salon utilities as Variable cost)
Calculate each of the following, where the cost object is customers served:
Salon rent ............................................................................... $2,300
Salon utilities (electric and water) ..................................................... $900
Hairstylists' salaries ..................................................... ............... $4,300
Hairstylists' commissions (a percentage of sales) .................................. $2,600
Depreciation on fixtures and equipment ............................................. $730
Shampoo and conditioner (only a small amount is used on each customer) ... $230
Insurance ............................................................................... $1,750
Advertising............................................................................. $2,000
Store manager's salary................................................................... $3,800
Hair dye and perm kits (each dye job or perm uses one kit) ....................... $460
a. Total variable costs.
b. Total fixed costs.
c. Total direct costs.
d. Total indirect costs.