Youth Athletic Services (YAS) provides adult supervision for
organized youth athletics. It has a president, William Mayes, and
five employees. He and one of the other five employees manage all
marketing and administrative duties. The remaining four employees
work directly on operations. YAS has four service departments:
managing, officiating, training, and dispute resolution. A time
card is marked and records are kept to monitor the time each
employee spends working in each department. When business is slow,
there is idle time, which is marked on the time card. (It is
necessary to have some idle time because some direct labor-hours
must be available to accommodate fluctuating peak demand periods
throughout the day and the week.)
Some of the July operating data are as follows:
Idle Time | Managing | Officiating | Training | Dispute Resolution | |||||
Sales revenue | $ | 7,550 | $ | 8,500 | $ | 3,600 | $ | 1,600 | |
Direct labor (in hours) | 20 | 350 | 110 | 155 | 120 | ||||
Direct overhead traceable to departments | |||||||||
Equipment | $ | 1,010 | $ | 935 | $ | 760 | $ | 40 | |
Supplies | 260 | 360 | 310 | 260 | |||||
Transportation | 435 | 1,060 | 210 | 80 | |||||
Other Data
Required:
Management wants to know whether each department is contributing to the company’s profit. Prepare an income statement for July that shows the revenue and cost of services for each department. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)
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Youth Athletic Services (YAS) provides adult supervision for organized youth athletics. It has a president, William...
Youth Athletic Services (YAS) provides adult supervision for organized youth athletics. It has a president, William Mayes, and five employees. He and one of the other five employees manage all marketing and administrative duties. The remaining four employees work directly on operations. YAS has four service departments: managing, officiating, training, and dispute resolution. A time card is marked and records are kept to monitor the time each employee spends working in each department. When business is slow, there is idle...
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