richardwallacedavis2 richardwallacedavis2

18-09-2022
Business

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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 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings:

Direct materials $ 27,000
Direct labor 472,500
Variable overhead 15,000
Fixed overhead 18,000
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 $1,500? Which of the following statements best describes the effect of this on HHH's costs?

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