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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 Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A

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 Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A
Transcribed Image Text: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 Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A
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