Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a varlable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. e. Determine the average expected cost per house, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Number of Houses Cleaned Total expected cost 20 30 40
Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6 per house. Required a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a varlable cost? b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost? c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost? d. Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. e. Determine the average expected cost per house, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Number of Houses Cleaned Total expected cost 20 30 40
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning
equipment at a cost of $760 per month. Labor costs are expected to be $90 per house cleaned and supplies are expected to cost $6
per house.
Required
a. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned,
assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost?
b. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle
Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost?
c. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle
Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost?
d. Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one
month.
e. Determine the average expected cost per house, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month.
Complete this question by entering your answers in the tabs below.
Required A Required B
Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one
month.
Number of Houses Cleaned
Total expected cost
Required C Required D Required E
20
30
< Required C
40
Required E >
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