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 0.9 hours. On average, HHH completes about 9,000 cleanings per year. The following total costs are associated with the total cleanings:
Direct materials$20,700Direct labor270,900Variable overhead13,500Fixed overhead15,300
If required, round your answers to the nearest cent.
1. Calculate the prime cost per cleaning.
2. Calculate the conversion cost per cleaning.
3. Calculate the total variable cost per cleaning.
4. Calculate the total service cost per cleaning.