Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $28,500 Direct labor 438,000 Variable overhead 22,500 Fixed overhead 25,500 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 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? Prime costs would increase Conversion costs per cleaning would increase Total service costs per cleaning would decrease Total variable costs would decrease
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started