ClearSky Cleaning Services, Inc. (CCS) is a house-cleaning service company. Each cleaning (cleaning one house one time) takes a team of four house cleaners about 2.5 hours. On average, CCS completes about 18,000 cleanings per year. The following total costs are associated with the total cleanings: • • Direct Materials = $50,000 Direct Labor = $840,000 Variable Overhead = $28,000 • Fixed Overhead = $30,000 Required: Calculate the prime cost per cleaning.

ClearSky Cleaning Services, Inc. (CCS) is a house-cleaning service company. Each cleaning (cleaning one house one time) takes a team of four house cleaners about 2.5 hours. On average, CCS completes about 18,000 cleanings per year. The following total costs are associated with the total cleanings: • • Direct Materials = $50,000 Direct Labor = $840,000 Variable Overhead = $28,000 • Fixed Overhead = $30,000 Required: Calculate the prime cost per cleaning.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2EB: Boarders estimates overhead will utilize 160,000 machine hours and cost $80,000. It takes 4 machine...

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