Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $551 an hour; its labor costs are $142 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $72,750 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $60,400 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.

	Selden Contracting	Moenhart Insurance	Englewood Medical Center
Revenue	$148,770	$93,670	$126,730
Labor	38,340	24,140	32,660
Overhead		18,459	24,974
Margin	$110,430	$51,071	$69,096

RUTLAND BUSINESS SERVICES
Income Statement
For the Month Ended August 31
Revenue from clients		$369,170
Less cost of services to clients:
Labor	$95,140
Overhead	72,750
Marketing and administrative costs	60,400
Total cost of services to clients		228,290
		$140,880
Less other costs:
Total other costs		0
		$140,880