eBook
Question Content Area
Costs of Services
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 2.1 hours. On average, HHH completes about 21,000 cleanings per year. The following total costs are associated with the total cleanings:
Direct materials $56,700
Direct labor 621,600
Variable overhead 23,100
Fixed overhead 27,300
Required:
If required, round your answers to the nearest cent.
1. Calculate the prime cost per cleaning.
$fill in the blank 1
per cleaning
2. Calculate the conversion cost per cleaning.
$fill in the blank 2
per cleaning
3. Calculate the total variable cost per cleaning.
$fill in the blank 3
per cleaning
4. Calculate the total service cost per cleaning.
$fill in the blank 4
per cleaning
5. What if rent on the office that Jean and Tom use to run HHH increased by $2,100? Which of the following statements best describes the effect of this on HHH's costs?
