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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. T

he following total costs are associated with the total cleanings:

Direct materials $16,200

Direct labor 293,400

Variable overhead 12,600

Fixed overhead 14,400

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 $900? Which of the following statements best describes the effect of this on HHH's costs?

a. Prime Cost would increase

b. conversion cost would increase

c. total service cost would decrease

d. total variable costs would decrease