Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $509 an hour; its labor costs are $128 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $62,250 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $57,600 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 August. Complete this question by entering your answers in the tabs below. Required A Required B What are the revenue and cost per client? Revenue Labor Overhead Margin Selden Contracting $ Moenhart Insurance $ Englewood Medical Center 0 $ Required A 0 Required B
Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center. RBS bills clients at $509 an hour; its labor costs are $128 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $62,250 were incurred and were assigned to clients on the basis of direct labor-hours. Because 80 hours were not billable, some overhead was not assigned to jobs. RBS had $57,600 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 August. Complete this question by entering your answers in the tabs below. Required A Required B What are the revenue and cost per client? Revenue Labor Overhead Margin Selden Contracting $ Moenhart Insurance $ Englewood Medical Center 0 $ Required A 0 Required B
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Rutland Business Services (RBS) provides miscellaneous consulting and services to local businesses. In August, RBS worked for three
clients. It worked 270 hours for Selden Contracting, 170 hours for Moenhart Insurance, and 230 hours for Englewood Medical Center.
RBS bills clients at $509 an hour; its labor costs are $128 an hour. A total of 750 hours were worked in August with 80 hours not
billable to clients. Overhead costs of $62,250 were incurred and were assigned to clients on the basis of direct labor-hours. Because
80 hours were not billable, some overhead was not assigned to jobs. RBS had $57,600 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 August.
Complete this question by entering your answers in the tabs below.
Required A Required B
What are the revenue and cost per client?
Selden
Contracting
Moenhart
Insurance
Revenue
Labor
Overhead
Margin
$
$
Englewood
Medical Center
$
Required A
0
Required B >
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare an income statement for August.
RUTLAND BUSINESS SERVICES
Less cost of services to clients:
Less other costs:
Income Statement
For the Month Ended August 31
Total cost of services to clients
Total other costs
< Required A
$
0
0
0
Required
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