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Rogell Academic Services ( RAS ) provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The
Rogell Academic Services RAS provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring Group Personalized Tutoring Pers Test Prep Test and Coding Code The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed NB Selected operating data for October follow: NB Group Pers Test Code Sales revenue $ $ $ $ Direct labor in hours Direct overhead traceable to departments Equipment $ $ $ $ Supplies Miscellaneous Other Data The six facilitators all make $ per hour. A bonus of $ per hour is paid for facilitating the coding service. The director earns $ per month. Overhead that cannot be directly traced to a service, which amounted to $ in October, is allocated among the four services plus the Not Billed "service" based on the number of direct laborhours used. Marketing costs in addition to the director's salary in October amounted to $ Other administrative costs in addition to the director's salary in October were $ Revenue transactions are cash; all other transactions are on account. Required: Management wants to know whether each service is contributing to the companys profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.Rogell Academic Services RAS provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring Group Personalized Tutoring Pers Test Prep Test and Coding Code The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed NB Selected operating data for October follow: Other Data The six facilitators all make $ per hour. A bonus of $ per hour is paid for facilitating the coding service. The director earns $ per month. Overhead that cannot be directly traced to a service, which amounted to $ in October, is allocated among the four services plus the Not Billed "service" based on the number of direct laborhours used. Marketing costs in addition to the director's salary in October amounted to $ Other administrative costs in addition to the director's salary in October were $ Revenue transactions are cash; all other transactions are on account. Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
Rogell Academic Services RAS provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring Group Personalized Tutoring Pers Test Prep Test and Coding Code The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed NB
Selected operating data for October follow:
NB Group Pers Test Code
Sales revenue $ $ $ $
Direct labor in hours
Direct overhead traceable to departments
Equipment $ $ $ $
Supplies
Miscellaneous
Other Data
The six facilitators all make $ per hour. A bonus of $ per hour is paid for facilitating the coding service.
The director earns $ per month.
Overhead that cannot be directly traced to a service, which amounted to $ in October, is allocated among the four services plus the Not Billed "service" based on the number of direct laborhours used.
Marketing costs in addition to the director's salary in October amounted to $
Other administrative costs in addition to the director's salary in October were $
Revenue transactions are cash; all other transactions are on account.
Required:
Management wants to know whether each service is contributing to the companys profit. Prepare an income statement for October that shows the revenue and cost for each service.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.Rogell Academic Services RAS provides tutoring and test preparation services for children and young adults. Employees include a
director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the
other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring Group
Personalized Tutoring Pers Test Prep Test and Coding Code The facilitators record the time spent on each service in the RAS
computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed NB
Selected operating data for October follow:
Other Data
The six facilitators all make $ per hour. A bonus of $ per hour is paid for facilitating the coding service.
The director earns $ per month.
Overhead that cannot be directly traced to a service, which amounted to $ in October, is allocated among the four services
plus the Not Billed "service" based on the number of direct laborhours used.
Marketing costs in addition to the director's salary in October amounted to $
Other administrative costs in addition to the director's salary in October were $
Revenue transactions are cash; all other transactions are on account.
Required:
Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October
that shows the revenue and cost for each service.
Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.
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