Cathedral City Services (CCS) is a not-for-profit organization offering two services in a mid-sized city. The services are "Elder Meals" and "Jobs4U." Elder Meals is a meals-on-wheels type program that delivers meals on a scheduled basis to seniors who are house-bound. Jobs4U 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 $290 fee per hour for each service. The revenues and costs for the year are shown in the following income statement:

CATHEDRAL CITY SERVICES
Income Statement
	Elder Meals	Jobs4U	Total
Revenue	$ 116,000	$ 290,000	$ 406,000
Expenses:
General office costs			73,500
Travel and transportation			54,400
Equipment lease and maintenance			29,250
Operating profit			$ 248,850

The following data have been collected concerning activities at CCS:

Activity	Cost Driver	Activity Level
		Elder Meals	Jobs4U
General office costs	Number of clients	130	80
Travel and transportation	Number of visits	590	90
Equipment lease and maintenance	Computer hours	230	940

Required:

Complete the income statement using activity-based costing and CCSs three cost drivers.

Recompute the income statement using direct labor-hours as the only allocation base (400 hours for Elder Meals; 1,000 hours for Jobs4U).

Cathedral City Services (CCS) is a not-for-profit organization offering two services in a mid-sized city. The services are "Elder Meals" and "Jobs4U." Elder Meals is a meals-on-wheels type program that delivers meals on a scheduled basis to seniors who are housebound. Jobs4U 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 $290 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'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 Jobs4U). Complete this question by entering your answers in the tabs below. Complete the income statement using activity-based costing and CCS's three cost drivers. Note: Do not round intermediate calculations