Costing service activities Car-Shine, Inc. provides a car waxing service for all types of cars. The company charges $80 for its professional car-wax job. Each car receives a thorough wash before cleaning and waxing. The cleaning compound and the paste wax are accounted for as direct materials. All other materials such as water and buffing pads are treated as indirect charges. All labor is direct labor except for the shift supervisor's salary. Below are cost data for the month of April when 300 cars were waxed.

In addition to the operating costs listed above the company must pay a franchise fee of 10 percent of gross revenue to the national chain that advertises and provides other support.
REQUIRED

a. Prepare a detailed report for the cost of waxing cars during April,

b. Compute the company's profit for April.

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Utilities (including water). Supervisor's salary Employee wages Cleaning compound Paste wax... Depreciation on equipment Building lease cost.... $ 1,500 11,520 1,140 1,725 1,050 1,800 900 Buffing pads 750 Miscellaneous 450