Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $500 an hour; its labor costs are $125 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $60,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $57,000 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 August.