Cost of Services Produced 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 Direct labor ? $309,600 Variable overhead Fixed overhead 11,700 13,500 Next year, HHH expects to purchase $31,700 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct materials Inventory Beginning Ending $3,500 2,100 There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day.