Chapter $2$ Homework Problems

Chapter $2$ Homework Problems

eBook

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 th cleaners about $1\mathrm{.}5$ hours. On average, HHH completes about $15,000$ cleanings per year. The following total costs are associated with the total cleanings:

Direct materials

Direct labor

Variable overhead

Fixed overhead

$ $27,000$

$472,500$

$15,000$

$18,000$

Required:

If required, round your answers to the nearest cent.

Calculate the prime cost per cleaning.

$ $$ per cleaning

Calculate the conversion cost per cleaning. $$

$

$x$ per cleaning

Calculate the total variable cost per cleaning.

$ $$ per cleaning

Calculate the total service cost per cleaning. $$

per cleaning

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$\text{'}$s

Conversion costs per cleaning would increase $$

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Chapter $2$ Homework Problems

eBook

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 th cleaners about $1\mathrm{.}5$ hours. On average, HHH completes about $15,000$ cleanings per year. The following total costs are associated with the total cleanings:

Direct materials

Direct labor

Variable overhead

Fixed overhead

$ $27,000$

$472,500$

$15,000$

$18,000$

Required:

If required, round your answers to the nearest cent.

Calculate the prime cost per cleaning.

$ $$ per cleaning

Calculate the conversion cost per cleaning.

$ $x$ per cleaning

Calculate the total variable cost per cleaning.

$ $$ per cleaning

Calculate the total service cost per cleaning.

$ $$

$$ per cleaning

What if rent on the office that Jean and Tom use to run HHH increased by $$1,500?$ Which of the following statements best describes the effect of this on HHH$\text{'}$s $$