Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For the month of July, UP Payroll Services worked 2,100 hours for Dune Motors, 630 hours for Jakes Charters, and 1,050 hours for Mission Hospital.

For the month of July, UP Payroll Services worked 2,100 hours for Dune Motors, 630 hours for Jakes Charters, and 1,050 hours for Mission Hospital. UP bills clients at $121 an hour; its labor costs are $50 an hour. A total of 4,200 hours were worked in July with 420 hours not billable to clients. Overhead costs of $38,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 420 hours were not billable, some overhead was not assigned to jobs. UP had $30,900 in marketing and administrative costs. All transactions were on account.

Required:

a. What are the revenue and cost per client?

b. Prepare an income statement for July.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions