During January, Broadway Consultants worked 1,000 hours for Nocando Manufacturing, 300 hours for Sails, Inc., and 500 hours for Original John’s Restaurants. The firm bills clients at $80 an hour; its labor costs are $30 an hour. A total of 2,000 hours were worked in January with 200 hours not billable to clients.

Overhead costs of $30,000 were incurred and assigned to clients on the basis of direct-labor hours.

Because 200 hours were not billable, some overhead was not assigned to jobs. Broadway Consultants had $30,000 in selling and administrative costs. All transactions were on account.

Required

a. What are the revenue and cost per client?

b. Prepare an income statement for January.