Calculate the prime cost per cleaning.

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

Required:

If required, round your answers to the nearest cent.

1. Calculate the prime cost per cleaning.

$per cleaning

2. Calculate the conversion cost per cleaning.

$per cleaning

3. Calculate the total variable cost per cleaning.

$per cleaning

4. Calculate the total service cost per cleaning.

$per cleaning

 

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