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Hello. I am starting this accounting problem that explores identifying fixed and variable costs in revenue hours and calculating the cost per revenue hour. would
Hello. I am starting this accounting problem that explores identifying fixed and variable costs in revenue hours and calculating the cost per revenue hour. would you work theough this problem to help me get started? Questions 1. "Revenue hours" represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? 2. For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour. Listen Exhibit 1 Salem Data Services Summary of Computer Utilization, First Quarter 2004 January February March 22 Number of weekdays (M-F) X 24 hours per day 20 480 23 552 528 Number of Saturdays X 8 hours per day 4 32 40 32 Total hours available for revenue 568 512 584 Revenue hours Intracompany Commercial Total revenue hours 206 123 329 181 135 316 223 138 361 Hours available to sell 239 196 223 Source: Casewriter. Exhibit 2 Salem Data Services Summary Results of Operations, First Quarter 2004 January February March Revenues Intracompany sales Commercial sales Total revenue $82,400 98,400 $180,800 $72,400 108,000 $180,400 $89,200 110,400 $199,600 Expenses Space costs: Rent Custodial services $8,000 1,240 9,240 $8,000 1,240 9,240 $8,000 1,240 9,240 95,000 5,400 95,000 5,400 95,000 5,400 Equipment costs Computer leases Maintenance Depreciation: Computer equipment Office equipment and fixtures Power 25,500 680 1,546 128, 126 25,500 680 1,485 128,065 25,500 680 1,697 128,277 Wages and salarios Operations: salaried statt Operations: hourly personnel Systems development and maintenance Administration Sales 21,600 7,896 12,000 9,000 11,200 61.696 21,600 7,584 12,000 9,000 11,200 61,384 21,600 8,664 12,000 9,000 11,200 62,464 Sales promotion Corporate services Total expenses 7,909 15,424 $222.395 7.039 15,359 $221,087 8,083 15,236 $223,300 $(41,595) Net incomo (los) $(40,687) $(23,700) Source Casewriter
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