For the month of May, Correctall Accountants worked 500 hours for Misfit Manufacturing, 150 hours for Hang Ten Surf Shop, and 250 hours for Mandarin Restaurants.

Correctall bills clients at $80 an hour, and labor costs are $30 an hour. A total of 1 ,000 hours were worked in May with 100 hours not billable to clients. Overhead costs of

$15,000 were incurred. Overhead was assigned to clients on the basis of direct laborhours.

Since 100 hours were not billable, some overhead was not assigned to jobs.

Correctall had $10,000 in marketing and administrative costs. All transactions were on account.

a. What is the revenue and cost per client?

b. Prepare an income statement for the month of May.