Question
For the month of July, UP Payroll Services worked 1,600 hours for Dune Motors, 480 hours for Jakes Charters, and 800 hours for Mission Hospital.
For the month of July, UP Payroll Services worked 1,600 hours for Dune Motors, 480 hours for Jakes Charters, and 800 hours for Mission Hospital. UP bills clients at $119 an hour; its labor costs are $49 an hour. A total of 3,200 hours were worked in July with 320 hours not billable to clients. Overhead costs of $32,500 were incurred and were assigned to clients on the basis of direct labor-hours. Because 320 hours were not billable, some overhead was not assigned to jobs. UP had $30,100 in marketing and administrative costs. All transactions were on account.
Required:
a. What are the revenues and the cost per client? (Do not round intermediate calculations.)
b. Prepare an income statement for July. (Do not round intermediate calculations.)
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