Cathedral City Services $($CCS$)$ is a not$-$for$-$profit organization offering two services in a mid$-$sized city. The services are "Elder Meals"

and "Jobs$4$U$."$ Elder Meals is a meals$-$on$-$wheels type program that delivers meals on a scheduled basis to seniors who are house$-$

bound. Jobs$4$U is a jobs$-$training program focused on youth or adults who are looking to change careers. Participants in the program

are sponsored by a local government agency, a charitable organization, or a local business. CCS charges a $$390$ fee per hour for each

service. The revenues and costs for the year are shown in the following income statement:

The following data have been collected concerning activities at CCS:

Required:

a$.$ Complete the income statement using activity$-$based costing and CCS$\text{'}$s three cost drivers.

b$.$ Recompute the income statement using direct labor$-$hours as the only allocation base $(400$ hours for Elder Meals; $1,000$ hours for

Jobs$4$U$).$