{"id":50323,"date":"2018-02-20T23:50:30","date_gmt":"2018-02-20T23:50:30","guid":{"rendered":"https:\/\/writemyessayfree.com\/activity-based-costing-and-process-costing"},"modified":"2017-08-16T12:27:56","modified_gmt":"2017-08-16T12:27:56","slug":"activity-based-costing-and-process-costing","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/activity-based-costing-and-process-costing\/","title":{"rendered":"Activity-Based Costing and Process Costing"},"content":{"rendered":"<p>Consider the following scenario:<\/p>\n<p>Andre has asked you to evaluate his business, Andre\u2019s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all clients is $0.40 per client. Assume that the only service performed is the giving of haircuts (including shampoo), the unit price of which is $12. Andre has asked you to find the following information.<\/p>\n<ul>\n<li>Find the contribution margin per haircut. Assume that the barbers&#8217; compensation is a fixed cost. Show calculations to support your answer.<\/li>\n<li>Determine the annual break-even point, in number of haircuts. Support your answer with an appropriate explanation. Show calculations to support your answer.<\/li>\n<li>What will be the operating income if 20,000 haircuts are performed? Show calculations to support your answer.<\/li>\n<li>Suppose Andre revises the compensation method. The barbers will receive $4 per hour plus $6 for each haircut. What is the new contribution margin per haircut? What is the annual break-even point (in number of haircuts)? Show calculations to support your answer.<\/li>\n<\/ul>\n<p>Using the information provided, provide a memo to Andre explaining the completed analysis and how he should use this information to monitor the operations of the barber shop.&nbsp; The memo should explain the cost associated with the barber shop including their relationships.<\/p>\n<p>MUST contain&nbsp;&nbsp;Excel spreadsheet and &nbsp;be 1-2 pages<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Consider the following scenario: Andre has asked you to evaluate his business, Andre\u2019s Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week <a href=\"https:\/\/www.benedictsol.com\/blogs\/activity-based-costing-and-process-costing\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-50323","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50323","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=50323"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/50323\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=50323"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=50323"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=50323"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}