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s Rogell Academic Services (RAS) provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring (Group), Personalized Tutoring (Pers). Test Prep (Test), and Coding (Code). The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed (NB). Selected operating data for October follow: Sales revenue Direct labor (in hours) Direct overhead traceable to departments. Equipment Supplies Miscellaneous Other Data NB 50 Group $ 9,100 450 $1,600 360 220 Pers $ 8,300 120 $ 650 280 160 Test $ 7,200 160 • Marketing costs (in addition to the director's salary) in October amounted to $870. . Other administrative costs (in addition to the director's salary) in October were $560. . Revenue transactions are cash; all other transactions are on account. $840 470 490 Code $ 8,100 170 $ 2,000 690 760 The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. . The director earns $4,500 per month. • Overhead that cannot be directly traced to a service, which amounted to $3.420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.

s Rogell Academic Services (RAS) provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring (Group), Personalized Tutoring (Pers). Test Prep (Test), and Coding (Code). The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed (NB). Selected operating data for October follow: Sales revenue Direct labor (in hours) Direct overhead traceable to departments. Equipment Supplies Miscellaneous Other Data NB 50 Group $ 9,100 450 $1,600 360 220 Pers $ 8,300 120 $ 650 280 160 Test $ 7,200 160 • Marketing costs (in addition to the director's salary) in October amounted to $870. . Other administrative costs (in addition to the director's salary) in October were $560. . Revenue transactions are cash; all other transactions are on account. $840 470 490 Code $ 8,100 170 $ 2,000 690 760 The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. . The director earns $4,500 per month. • Overhead that cannot be directly traced to a service, which amounted to $3.420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.

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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-Fr Miscellaneous Other Data - Revenue Cost of services: Labor Direct overhead Indirect overhead Total costs of services The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. The director earns $4,500 per month. Overhead that cannot be directly traced to a service, which amounted to $3,420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Marketing costs (in addition to the director's salary) in October amounted to $870. • Other administrative costs (in addition to the director's salary) in October were $560. Revenue transactions are cash; all other transactions are on account. Department margin Less other costs: Unassigned labor costs Unassigned overhead indirect costs. Marketing and administrative costs Operating profit (loss) Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. ROGELL ACADEMIC SERVICES Income Statement For the Month Ended October 31 Group $ $ $ 220 9.100 8.100 2.180 10.280 $ $ 8.300 $ 160 2.160 $ 1.090 TA 3.250 $ 7.200 2.880 1.800 4,680 MINI $ 490 $ $ 760 Code 8.100 S 3.910 3.450 7,360 S EA $ Total 32,700 25,570 0 900 5,930 (6.830)
Transcribed Image Text:-Fr Miscellaneous Other Data - Revenue Cost of services: Labor Direct overhead Indirect overhead Total costs of services The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. The director earns $4,500 per month. Overhead that cannot be directly traced to a service, which amounted to $3,420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Marketing costs (in addition to the director's salary) in October amounted to $870. • Other administrative costs (in addition to the director's salary) in October were $560. Revenue transactions are cash; all other transactions are on account. Department margin Less other costs: Unassigned labor costs Unassigned overhead indirect costs. Marketing and administrative costs Operating profit (loss) Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. ROGELL ACADEMIC SERVICES Income Statement For the Month Ended October 31 Group $ $ $ 220 9.100 8.100 2.180 10.280 $ $ 8.300 $ 160 2.160 $ 1.090 TA 3.250 $ 7.200 2.880 1.800 4,680 MINI $ 490 $ $ 760 Code 8.100 S 3.910 3.450 7,360 S EA $ Total 32,700 25,570 0 900 5,930 (6.830)
Book Print G eferences Rogell Academic Services (RAS) provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring (Group), Personalized Tutoring (Pers), Test Prep (Test), and Coding (Code). The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed (NB). Selected operating data for October follow: Sales revenue Direct labor (in hours) Direct overhead traceable to departments Other Data . Equipment Supplies Miscellaneous • D Revenue Cost of services: Labor Direct overhead Indirect overhead • The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. • The director earns $4,500 per month. • Overhead that cannot be directly traced to a service, which amounted to $3.420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Thtel mnete nf centirse Marketing costs (in addition to the director's salary) in October amounted to $870. Other administrative costs (in addition to the director's salary) in October were $560. Revenue transactions are cash; all other transactions are on account. NB 60 ROGELL ACADEMIC SERVICES $ Group $ 9,100 Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Income Statement For the Month Ended October 31 Group Pers $ $ 1.600 B6G 9.100 $ 8.100 2.180 10 280 $ 8,300 8.300 $ 2.160 1.090 $ Test $ 7,200 160 7.200 $ 2.880 1.800 1 AAN Code $ 8,100 $ $ 2,000 Code Total 8.100 $ 32,700 3.910 3.450
Transcribed Image Text:Book Print G eferences Rogell Academic Services (RAS) provides tutoring and test preparation services for children and young adults. Employees include a director and six facilitators. The director manages all marketing and administrative activities, sometimes with the help of one of the other employees. RAS offers four basic services and accounts for each one separately. The services are Group Tutoring (Group), Personalized Tutoring (Pers), Test Prep (Test), and Coding (Code). The facilitators record the time spent on each service in the RAS computer system. Time spent in training, planning, or when demand is temporarily low is recorded as Not Billed (NB). Selected operating data for October follow: Sales revenue Direct labor (in hours) Direct overhead traceable to departments Other Data . Equipment Supplies Miscellaneous • D Revenue Cost of services: Labor Direct overhead Indirect overhead • The six facilitators all make $18 per hour. A bonus of $5 per hour is paid for facilitating the coding service. • The director earns $4,500 per month. • Overhead that cannot be directly traced to a service, which amounted to $3.420 in October, is allocated among the four services plus the Not Billed "service" based on the number of direct labor-hours used. Thtel mnete nf centirse Marketing costs (in addition to the director's salary) in October amounted to $870. Other administrative costs (in addition to the director's salary) in October were $560. Revenue transactions are cash; all other transactions are on account. NB 60 ROGELL ACADEMIC SERVICES $ Group $ 9,100 Required: Management wants to know whether each service is contributing to the company's profit. Prepare an income statement for October that shows the revenue and cost for each service. Note: Do not round intermediate calculations. Loss amounts should be indicated with a minus sign. Income Statement For the Month Ended October 31 Group Pers $ $ 1.600 B6G 9.100 $ 8.100 2.180 10 280 $ 8,300 8.300 $ 2.160 1.090 $ Test $ 7,200 160 7.200 $ 2.880 1.800 1 AAN Code $ 8,100 $ $ 2,000 Code Total 8.100 $ 32,700 3.910 3.450
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