Consider the following Income Statement for the Double. K Hotel.

Indirect expenses will be allocated on the basis of number of employees.
Department No. of Employees Rooms 55 Food and Beverage 70 Gift Shop 01 You are required to prepare a fully-allocated income statement using a single allocation base approach to cost allocation.

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Double. K Hotel Income Statement Rooms Food and Bev Gift Shop Total Revenue 5,00,000 5,00,000 2000 10,02,000 Cost of sales 1,80,000 1000 1,81,000 Payroll and related exp. 1,20,000 1,30,000 400 2,50,400 Other direct exp. 40,000 45,000 100 85,100 Departmental Income 3,40,000 1,45,000 500 4,85,500 Undistributed Exp. Payroll and Related Exp. Other Exp. Administration and general 60,000 30,000 90,000 45,000 25,000 70,000 Marketing Property operation and maintenance and energy cost Insurance 30,000 40,000 70,000 10,000 10,000 Depreciation 80,000 80,000 1,35,000 1,85,000 3,20,000 Income before income tax 1,65,500 Income tax 50,000 Net Income 1,15,500