Question
For the month of July, UP Payroll Services worked 1,700 hours for Dune Motors, 510 hours for Jakes Charters, and 850 hours for Mission Hospital.
For the month of July, UP Payroll Services worked 1,700 hours for Dune Motors, 510 hours for Jakes Charters, and 850 hours for Mission Hospital. UP bills clients at $121 an hour; its labor costs are $40 an hour. A total of 3,400 hours were worked in July with 340 hours not billable to clients. Overhead costs of $31,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 340 hours were not billable, some overhead was not assigned to jobs. UP had $29,800 in marketing and administrative costs. All transactions were on account.
Required:
a. What are the revenue and cost per client
Dune Motors | Jakes Charters | Mission Hospital | |
Revenue | ? | ? | ? |
Labor | ? | ? | ? |
Overhead | ? | ? | ? |
Margin | ? | ? | ? |
b. Prepare an income statement for July.
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