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Current Attempt in Progress Waterway College provides its own housekeeping services. The College director would like to outsource this service and has found a

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Current Attempt in Progress Waterway College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $50 per hour. The following information has been collected about the cost per hour to the college for performing its own housekeeping services: Cost per hour of service: Cleaning supplies $4 Direct labour costs $27 Variable overhead $1 Total hours of housekeeping services per year 3.190 Total fixed overhead $51.480 (a)

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