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	$34,500
Direct labor	510,000
Variable overhead	18,000
Fixed overhead	21,000

Required:

If required, round your answers to the nearest cent.

1. Calculate the prime cost per cleaning. $fill in the blank 1per cleaning

2. Calculate the conversion cost per cleaning. $fill in the blank 2per cleaning

3. Calculate the total variable cost per cleaning. $fill in the blank 3per cleaning

4. Calculate the total service cost per cleaning. $fill in the blank 4per 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?