Cathedral City Services (CCS) is a not-for-profit organization offering two services in a mid-sized city. The services are "Elder Meals" and "Jobs4U." Elder Meals is a meals-on-wheels type program that delivers meals on a scheduled basis to seniors who are house- bound. Jobs4U is a jobs-training program focused on youth or adults who are looking to change careers. Participants in the program are sponsored by a local government agency, a charitable organization, or a local business. CCS charges a $380 fee per hour for each service. The revenues and costs for the year are shown in the following income statement: Revenue Expenses: CATHEDRAL CITY SERVICES Income Statement General office costs Travel and transportation Equipment lease and maintenance Operating profit Activity General office costs Elder Meals $ 152,000 The following data have been collected concerning activities at CCS: Jobs4U $ 380,000 Cost Driver Number of clients Number of visits Computer hours Elder Meals Total $ 532,000 Activity Level 184 662 248 105,000 61,600 31,500 $ 333,900 Jobs4U 116 108 1,012 Travel and transportation Equipment lease and maintenance Required: a. Complete the income statement using activity-based costing and CCS's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (400 hours for Elder Meals; 1,000 hours for Jobs4U).
Cathedral City Services (CCS) is a not-for-profit organization offering two services in a mid-sized city. The services are "Elder Meals" and "Jobs4U." Elder Meals is a meals-on-wheels type program that delivers meals on a scheduled basis to seniors who are house- bound. Jobs4U is a jobs-training program focused on youth or adults who are looking to change careers. Participants in the program are sponsored by a local government agency, a charitable organization, or a local business. CCS charges a $380 fee per hour for each service. The revenues and costs for the year are shown in the following income statement: Revenue Expenses: CATHEDRAL CITY SERVICES Income Statement General office costs Travel and transportation Equipment lease and maintenance Operating profit Activity General office costs Elder Meals $ 152,000 The following data have been collected concerning activities at CCS: Jobs4U $ 380,000 Cost Driver Number of clients Number of visits Computer hours Elder Meals Total $ 532,000 Activity Level 184 662 248 105,000 61,600 31,500 $ 333,900 Jobs4U 116 108 1,012 Travel and transportation Equipment lease and maintenance Required: a. Complete the income statement using activity-based costing and CCS's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (400 hours for Elder Meals; 1,000 hours for Jobs4U).
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 31P
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Please help me with show all Calculation thanku
Transcribed Image Text:Required A Required B
Complete the income statement using activity-based costing and CCS's three cost drivers.
Note: Do not round intermediate calculations.
Account
Revenue
Expenses:
General office costs
Travel
Equipment lease
Operating profit
Required A Required B
Elder Meals
$ 152,000 $ 380,000 $
Account
Revenue
Expenses
Profit
Jobs4U
Elder Meals
$ 152,000 $ 380,000 $
Jobs4U
Recompute the income statement using direct labor-hours as the only allocation base (400 hours for Elder Meals; 1,000 hours
for Jobs4U).
Note: Do not round intermediate calculations and round your final answers to the nearest whole dollar.
$
$
Total
Total
532,000
532,000
198,100
333,900
105,000
61,600
31,500
333,900
Transcribed Image Text:Cathedral City Services (CCS) is a not-for-profit organization offering two services in a mid-sized city. The services are "Elder Meals"
and "Jobs4U." Elder Meals is a meals-on-wheels type program that delivers meals on a scheduled basis to seniors who are house-
bound. Jobs4U is a jobs-training program focused on youth or adults who are looking to change careers. Participants in the program
are sponsored by a local government agency, a charitable organization, or a local business. CCS charges a $380 fee per hour for each
service. The revenues and costs for the year are shown in the following income statement:
Revenue
Expenses:
CATHEDRAL CITY SERVICES
Income Statement
General office costs
Travel and transportation
Equipment lease and maintenance
Operating profit
Activity
General office costs
Elder Meals
$ 152,000
The following data have been collected concerning activities at CCS:
Travel and transportation
Equipment lease and maintenance
Jobs4U
$ 380,000
Cost Driver
Number of clients.
Number of visits
Computer hours
Elder Meals
Total
$ 532,000
Activity Level
184
662
248
105,000
61,600
31,500
$333,900
Jobs4U
116
108
1,012
Required:
a. Complete the income statement using activity-based costing and CCS's three cost drivers.
b. Recompute the income statement using direct labor-hours as the only allocation base (400 hours for Elder Meals; 1,000 hours for
Jobs4U).
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