College
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 1.5 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$472,500Variable overhead15,000Fixed overhead18,000Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows:Direct Materials InventoryBeginning$4,000Ending2,600There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day.Required:1. Prepare a statement of cost of services sold in good form. If an amount is zero, enter "0".Happy Home Helpers, Inc.Statement of Cost of Services SoldFor the Coming Year