Job Costs: Service Company For the month of January, Peninsula Accountants worked 2,000 hours for Lake Lumber, 600 hours for Marty’s Marina, and 1,000 hours for the State Prison System. Peninsula bills clients at \($120\) an hour; its labor costs are \($45\) an hour. A total of 4,000 hours were worked in J anuary with 400 hours not billable to clients. Overhead costs of \($45,000\) were incurred and were assigned to clients on the basis of direct labor-hours. Because 400 hours were not billable, some overhead was not assigned to jobs. Peninsula had \($30,000\) in marketing 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.