MAF151

TOPIC 8: SERVICE COSTING

TUTORIAL 1

a. Provide TWO (2) examples of businesses in the service industry with their possible
respective cost units.

b. Kaisarah owns a saloon. She started her business two years ago by providing
services such as hair treatment, hair colouring and hairstyling. To run the
business, she hired two (2) hairstylists and an account clerk.

Below are the costs incurred for 2022 operation:

Rental of shop building RM1,800 per month

Business license RM350 per annum
Depreciation on hair treatment tools RM700 per annum
Materials for the hair treatment RM2,200 per month
Hairstylists’ salary RM1,500 per stylist per month
Wages of account clerk RM800 per clerk per month

Required:

Evaluate the total cost incurred by Kaisarah for 2022.

TUTORIAL 2

a. State one of the costs associated for the following services companies.

Hospital Hotel
Pakar Pantai Timur Seri Menanti
Fixed cost
Variable cost
Cost centre
Cost unit

b. Pakar Perdana College is a centre that provides the programs related to

nursing and health education. The following data is given for the year 2022.

Number of staff 18
Number of students per semester 150
Number of semesters per year 2
Staff salaries RM2,500 per staff per month
Rental of building RM1,200 per month
Teaching material cost RM250 per student
Stationery cost RM3,250 per year
Medical allowance RM750 per semester

Required:

Calculate the total operating cost and cost per student for the year 2022.
TUTORIAL 3

Cost accounting is a method of accounting in which all cost in carrying out an activity
are gathered and analysed to determine the selling price for product or services.

a. Define service costing and give ONE (1) example of service type of business.

b. State TWO (2) characteristics of service costing.

c. C-Hat Fitness Centre is offering services to train people to get healthy and fit.
The following data is related to the cost for the month of March 2023.

Fitness instructor salaries RM1,400 per instructor per month

Administrative staff salaries RM1,000 per staff per month
Number of Fitness Instructors 6 instructors
Number of administrative staff 3 staffs
Number of trainees 30 trainees
Rental of fitness centre RM2,000 per month
Towels RM5 per trainee per month
Depreciation of gym equipment RM500 per month
Utilities RM800 per month
Refreshment RM10 per trainee per month

Required:

Evaluate the total cost per trainee for the month of March 2023.