For the month of July, UP Payroll Services worked 2,000 hours for Dune Motors, 600 hours for Jakes Charters, and 1,000 hours for Mission Hospital. UP bills clients at $123 an hour; its labor costs are $40 an hour. A total of 4,000 hours were worked in July with 400 hours not billable to clients. Overhead costs of $36,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 400 hours were not billable, some overhead was not assigned to jobs. UP had $31,000 in marketing and administrative costs. All transactions were on account.

Required:

a. What are the revenue and cost per client?

What are the revenue and the cost per client? (Do not round intermediate calculations.)

	Dune Motors	Jakes Charters	Mission Hospital
Revenue
Labor
Overhead
Margin

b. Prepare an income statement for July.

Prepare an income statement for July. (Do not round intermediate calculations.)

UP PAYROLL SERVICES
Income Statement
For the Month Ending July 31
Less cost of services to clients:
Total cost of services to clients
Less other costs:
Total other costs