Problem $7-63($Static$)$ Job Costs: Service Company $($LO $7-4)$

Rutland Business Services $($RBS$)$ provides miscellaneous consulting and services to local businesses. In August, RBS worked for $t$

clients. It worked $270$ hours for Selden Contracting, $170$ hours for Moenhart Insurance, and $230$ hours for Englewood Medical Cer

RBS bills clients at $$500$ an hour; its labor costs are $$125$ an hour. A total of $750$ hours were worked in August with $80$ hours not

billable to clients. Overhead costs of $$60,000$ were incurred and were assigned to clients on the basis of direct labor$-$hours. Beca

$80$ hours were not billable, some overhead was not assigned to jobs. RBS had $$57,000$ 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 August.

Complete this question by entering your answers in the tabs below.

What are the revenue and cost per client?