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Accounting Assignment | Custom Assignment Help

Glam Co is hairdressing salon which provides both “cuts” and “treatments” to clientes. All cuts and treatments at the salon are carried out by one of the salon’s 3 senior stylists. The salon also has 2 salon assistants and 2 junior stylists.

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Every customer attending the salon is firts seen by a salon assistant, who washes their hair; next by a senior stylist, who cuts or treats the hair depending on which service the customer wants; then finally, a junior stylist who dries their hair. The average length of time spent with each member of staff is as follows:

Cut hours                          Treatment Hours

Assistant                                                           0,1                                        0,3

Senior Stylist                                                    1,2                                        1,8

Junior Stylist                                                    0,6                                        0,5

The salon is open for eight hours each day for six days per week. It is only closed for two weeks each year. Staff salaries are $40,000 each year for each senior stylist, $28,000 each year for each junior stylist and $12,000 each year for each of the assistants. The cost of cleaning products applied when washing the hair is $1.50 per cliente. The cost of all additional products applied during a “treatment” is $7.40 per cliente. Other salon costs (excluding labour and raw materials) amount to $95,000 each year.

Glam Co charges $60 for each cut and $ 120 for each treatment.

The senior stylist time has been correctly identified as the botleneck activity.

What is the throughput accounting ratio (TPAR) for both services?

A)       Cuts = 3.69; Treatment = 3.11

B)       Cuts = 1.96; Treatment = 3.11

C)       Cuts = 1.19; Treatment = 1.51

D)       Cuts = 3.69; Treatment = 4.68

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