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 $500 an hour; its labor costs are $125 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $60,000 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 $57,000 in marketing and administrative costs. All transactions were on account. Required: What are the revenue and cost per client? Prepare an income statement for August.
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 $500 an hour; its labor costs are $125 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients. Overhead costs of $60,000 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 $57,000 in marketing and administrative costs. All transactions were on account. Required: What are the revenue and cost per client? Prepare an income statement for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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 $500 an hour; its labor costs are $125 an hour. A total of 750 hours were worked in August with 80 hours not billable to clients.
Required:
-
What are the revenue and cost per client?
-
Prepare an income statement for August.
![**Income Statement Preparation Template**
**RUTLAND BUSINESS SERVICES**
**Income Statement**
**For the Month Ended August 31**
1. **Less cost of services to clients:**
- [Enter specific service costs]
2. **Total cost of services to clients:**
- $0
3. **Less other costs:**
- [Enter other cost details]
4. **Total other costs:**
- $0
This template is designed to guide the preparation of an income statement for Rutland Business Services for the month ending August 31. It features sections for detailing costs associated with services to clients and other additional costs, culminating in a total for each category. Fill in the necessary values to complete the income statement.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff00761e5-6ea2-4b64-9c87-d0591240e351%2Fca10d62d-ed6d-45ac-b971-8d5bf68ed956%2Fs45me6t_processed.png&w=3840&q=75)
Transcribed Image Text:**Income Statement Preparation Template**
**RUTLAND BUSINESS SERVICES**
**Income Statement**
**For the Month Ended August 31**
1. **Less cost of services to clients:**
- [Enter specific service costs]
2. **Total cost of services to clients:**
- $0
3. **Less other costs:**
- [Enter other cost details]
4. **Total other costs:**
- $0
This template is designed to guide the preparation of an income statement for Rutland Business Services for the month ending August 31. It features sections for detailing costs associated with services to clients and other additional costs, culminating in a total for each category. Fill in the necessary values to complete the income statement.
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