Exercise 9-47 (Algo) Activity-Based versus Traditional Costing-Ethical Issues (LO 9-3,4,5) Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement WINDY CITY COACHING Income Statement Teen Executive Counseling Coaching Revenue $63,000 $129,000 Expenses Administrative support Transportation, etc Equipment Profit Total $192,000 44,000 31,680 14,000 $102,320 WCC has kept good records of the following data for cost allocation purposes. Activity Providing administrative support Traveling Using equipment Cost Driver Number of clients Number of visits Computer hours Activity Level Teen Executive Counseling Coaching 6 4 90 130 700 700 Required: a. Complete the income statement using activity based costing and WCC three cost drivers b. Recompute the income statement using direct labor hours as the only allocation base (220 hours for teen counseling: 420 hours for executive coaching) Complete this question by entering your answers in the tabs below. Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling: 420 hours executive coaching). Complete this question by entering your answers in the tabs below. Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round Intermediate calculations.) Account Teen Total Executive Counseling Coaching $ 63,000 $ 129,000 $ 192,000 Revenue Expenses Administrative support Transportation, etc Equipment Profit 44,000 31,680 14,000 102,320 $ Required A Required B > Traveling Using equipment Number of visits Computer hours 90 700 130 700 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 420 hours fo executive coaching). Complete this question by entering your answers in the tabs below. Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 420 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Account Revenue Expenses Profit Teen Executive Total Counseling Coaching $ 63,000 $ 129,000 $ 192,000 89,680 $ 102,320