Costs of ServicesJean 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 1.8 hours. On average, HHH completes about 18,000 cleanings per year. The following total costs are associated with the total cleanings:
Direct materials $52,200
Direct labor 563,400
Variable overhead 25,200
Fixed overhead 28,800
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