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A local barbershop cuts the hair of male customers the

Question - A local barbershop cuts the hair of male customers, the barbers offer no special styling. During the month of February 1,500 haircuts were given. The cost of haircuts includes the following:

Direct labor $10,500

Direct materials 1,500

Overhead 3,000

Total $15,000

Required -

1. Explain why process costing is appropriate for this haircutting operation.

2. Calculate the cost per haircut.

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Accounting Basics: A local barbershop cuts the hair of male customers the

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