User Account

All Pages

What price should Heavenly Day Spa charge

Assignment Help Accounting Basics
Reference no: EM133007268

Question - Costing and Pricing - Heavenly Day Spa uses a costing system for all customers who have treatment at their day spa. The day spa uses a pre-determined indirect cost rate for allocating indirect costs to individual customer visits, allocating indirect costs at the rate of $22 per hour.

Customer Jenny James will be in the Day Spa for two hours during September.

The direct costs related to Jenny's two hour visit include:

Direct Materials

Direct Labour

Cost of products used

$12

Cost of Therapist

$20/hour

Other supplies

$4

 

 

Required -

a) Calculate the full cost (direct costs + indirect costs) of Jenny James' two hour visit.

b) Assume the Day Spa applies a cost-based pricing model to set prices to customers, adding a mark-up of 30%. What price should Heavenly Day Spa charge Jenny James for her visit.

Reference no: EM133007268

Questions Cloud

Which annuity is more valuable : Which annuity is more valuable? If the going interest rate is 10 percent, the PV of a 5-year $1,000 annuity is $3,790.79. The PV of a 25-year $450
What is the bad debt expense for the year for jakobi jeweler : Jakobi reported sales of $1,000,000 and recorded accounts receivables write-offs of $10,000. What is the bad debt expense for the year 2020?
Compute the working capital and the current ratio for year : Compute the working capital and the current ratio for Year 2 and Year 1. What conclusions concerning the company's ability to meet its financial?
Discuss consequences of workplace harassments : Analyse organisational culture at QBE and identify what makes its ethical climate strong and Discuss power imbalance between CEO Pat Regan and the anonymous
What price should Heavenly Day Spa charge : Assume the Day Spa applies a cost-based pricing model to set prices to customers, adding a mark-up of 30%. What price should Heavenly Day Spa charge
Determine the amount of change : Determine the amount of change (in millions) and percent of change in net income from Year 1 to Year 2. Round to one decimal place.
What annual interest rate be used to record interest expense : For a loan of this type is 15 percent per year. What annual interest rate should be used to record interest expense for this year and next year?
What consolidated balance sheet of ruth displays goodwill : As a result of the acquisition of Halcomb by Ruth, What consolidated balance sheet of Ruth and subsidiary displays goodwill in the amount of
What is the correct accounting treatment for the transaction : What is the correct accounting treatment for this transaction? A company delivers a group of its receivables to a bank, so that it can deliver the value.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Transferring land to the corporation

Karen, in forming a new corporation, transfers land to the corporation in exchange for 100 percent of the stock of the corporation. Karen's basis in the land is 275,000, the corporation assumes a liability on the property in the amount of 300,000...

  What principles of internal control were violated

Draft a correct bank reconciliation. (Hint: Deduct the amount of the theft from adjusted balance per books.) What principles of internal control were violated?

  Compute the cash balance at the end of the first year

Alpaca has an effective income tax rate of 40%. Compute the cash balance at the end of the first year for Alpaca Corporation

  Compute the net income under absorption costing method

During the year, the company produced 20,000 units and sold 16,000 units. Compute the net income under absorption costing method

  How the manager of the maintenance division be evaluated

During the last three years, requests for maintenance have increased considerably and as a result of that, How the manager of maintenance division be evaluated

  Create a comprehensive work program for the inventory

Create a comprehensive work program for the Inventory. Please be sure to use the most current 10-K form for Proctor & Gamble and this link for reference

  Various types of accounting changes can affect the

various types of accounting changes can affect the financial statements of a business enterprise differently. assume

  What is Dan s assessable income in the current tax year

Dan received a cheque for the net amount of $3600. In relation to the payment, what is Dan s assessable income in the current tax year

  Prepare all necessary journal entries for windsor for lease

Prepare all necessary journal entries for Windsor for this lease through December 31, 2020. (Record journal entries in the order presented in the problem.)

  Calculate the total dollar amount of discount

Calculate the total dollar amount of discount or premium amortization during the first year (5/1/12 through 4/30/13) these bonds were outstanding

  What is the couple adjusted gross income

Their employers withheld $1,800 in federal income taxes and $800 state income tax from their paychecks. What is the couple adjusted gross income

  How creating responsibility centers would hold manager

Who should be held accountable for the breakdown and the additional cost that Paula has to pay. Discuss how creating responsibility centers would hold

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd