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 Counseling			Executive Coaching			Total
Revenue	$	72,000		$	126,000		$	198,000
Expenses:
Administrative support								46,200
Transportation, etc								31,740
Equipment								23,800
Profit							$	96,260

WCC has kept good records of the following data for cost allocation purposes:

		Activity Level
Activity	Cost Driver	Teen Counseling	Executive Coaching
Providing administrative support	Number of clients	6	5
Traveling	Number of visits	90	140
Using equipment	Computer hours	800	900

Required a. Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Account Total Counselin $72,000 126,000$198,000 Expenses Administrative support 46,200 Transportation, etc 31,740 23,800 Equipment 96,260 Profit b. Recompute the income statement using direct labor-hours as the only allocation base (230 hours for teen counseling; 430 hours for executive coaching). (Do not round intermediate calculations.) Teen Total Account Counselin Coachirn Revenue 72,000 126,000 198,000 101,740 Profit 96,260