Heather's Horse Spa (HHS) is an establishment that boards,
trains, and pampers horses while their owners are on vacation.
Heather sells her service as an "enchanting vacation experience for
your horse while you vacation elsewhere." Horse feed, shampoos,
ribbons, and other supplies are treated as variable indirect costs.
Consequently, there are no direct materials involved in the
vacation service. Other overhead costs including indirect labor,
depreciation on the barn, and advertising are fixed. Both variable
and fixed overhead are allocated...