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Please show all work. Thanks. Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges
Please show all work. Thanks.
Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement WINDY CITY COACHING Income Statement Teen Executive Counseling Coaching Revenue $66,000 $126,000 Expenses: Administrative support Transportation, etc Equipment Profit Total $192,000 37,000 35,000 21,000 $ 99,000 WCC has kept good records of the following data for cost allocation purposes. Activity Level Teen Executive Activity Cost Driver Counseling Coaching Providing administrative support Number of clients 6 4 Traveling Number of visits 110 140 Using equipment Computer hours 600 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (230 hours for teen counseling: 410 hours for executive coaching). Complete this question by entering your answers in the tabs below. Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Account Teen Executive Total Counseling Coaching Revenue $ 66,000 $ 126,000 $ 192,000 Expenses: Administrative support 37,000 Transportation, etc 35,000 Equipment 21,000 Profit $ 99,000 QUA Required B > Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (230 hours for teen counseling: 410 hours for executive coaching). Complete this question by entering your answers in the tabs below. Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (230 hours for teen counseling; 410 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar) Teen Executive Account Total Counseling Coaching Revenue $ 66.000 5 126,000 S 192,000 Expenses 93,000 Profit $ 99,000 Step by Step Solution
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