Question

4.

For the month of July, UP Payroll Services worked 1,900 hours for Dune Motors, 570 hours for Jake’s Charters, and 950 hours for Mission Hospital. UP bills clients at $117 an hour; its labor costs are $45 an hour. A total of 3,800 hours were worked in July with 380 hours not billable to clients. Overhead costs of $38,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 380 hours were not billable, some overhead was not assigned to jobs. UP had $29,300 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 July.

Answer 1

- solo a (a) ce un ☺ Overhead Cost To be distribute in ratio of 1905 57:95:38 03 between Dune, Jake's charter, Mission hospital & other ею, of so, for Done = 38000 x 1go = 19000. a so on 3807 05 (1) Cost Per client at 06 Particolars 07 Labour cost (LHxLR) - Addå overhead wst (wal ①) Dune Motors 85,soo 0000 Jake's charter 25,650 5,700 Mission Hospital 42,750 9,soo Cost per client 31,350 52.250 104,500 February total cost es 188,100 2019 Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

07 January 2019 Monday – WK 02 (007-358) Solo 4. og (it) Revenue per client - Particulars to Dune 10 No. of hours worked 1900 x Rate per hour Revenue per client 222,300 Jake of Mission 570 gso 17 (17 66,690 111.150 UT Total Revenue = a b) In conde Statement for July e particolars - Revenue from clients 03 less or Cost assigned to clients on lessår Overhead Cost not assigned 102 to clients a less & Marketing and Administrative Cost . Income for Joly Month trial Amount ($) 400, 140 188,100 3,800 04 29,300 178,940 06