Question
Schatzies is a veterinary clinic. At the beginning of July, the clinic had $720 of veterinary supplies on hand. The following information is available for
Schatzies is a veterinary clinic. At the beginning of July, the clinic had $720 of veterinary supplies on hand. The following information is available for July 2009. Salaries for veterinary staff.............................................. $32,000 Salaries for veterinary assistants....................................... 12,000 Salary for receptionist..................................................... 2,500 Wages for ofce workers.............................................. 6,000 Veterinary supplies purchased in July............................ 9,600 Veterinary supplies on hand on July 31............................. 1,150 Depreciation on hospital and lab equipment........................ 8,600 Depreciation on ofce equipment...................................... 3,000 Building rent (60% related to treatment) .............................. 3,600 Utilities (80% related to treatment) .......................................... 1,800 Required: (a) What is the overhead amount related to the cost of services rendered? (b) Compute Cost of Services Rendered. (c) Schatzies collected $88,000 in treatment fees. What was Schatzies gross prot and net income? (Hint: Gross prot is revenues minus cost of services provided.)
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