Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning
Question:
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 1.8 hours. On average, HHH completes about 18,000 cleanings per year. The following total costs are associated with the total cleanings:
Direct materials | ? |
Direct labor | $532,800 |
Variable overhead | 21,600 |
Fixed overhead | 25,200 |
Next year, HHH expects to purchase $53,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:
Direct materials Inventory | |
Beginning | $3,200 |
Ending | 1,800 |
There is no work-in-process inventory; in other words, a cleaning is started and completed on the same day.
1. Prepare a statement of services produced in good form. If an amount is zero, enter "0".
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta