Solomon Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Direct Labor Other Direct Operating Costs Condo 1 $ 17,300 $ 39,800 Condo 2 18,300 43,000 Condo 3 28,500 62,500 Total $ 64,100 $ 145,300 Indirect operating expenses, which amounted to $43,590, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required Assuming that the amount of rent revenue from Condo 2 is $100,000, what amount of income did it earn? Note: Do not round intermediate calculations.
Solomon Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow. Direct Labor Other Direct Operating Costs Condo 1 $ 17,300 $ 39,800 Condo 2 18,300 43,000 Condo 3 28,500 62,500 Total $ 64,100 $ 145,300 Indirect operating expenses, which amounted to $43,590, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required Assuming that the amount of rent revenue from Condo 2 is $100,000, what amount of income did it earn? Note: Do not round intermediate calculations.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
Related questions
Question
Solomon Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation . The direct operating costs for each condo follow.
Direct Labor Other Direct Operating Costs
Condo 1 $ 17,300 $ 39,800
Condo 2 18,300 43,000
Condo 3 28,500 62,500
Total $ 64,100 $ 145,300
Indirect operating expenses, which amounted to $43,590, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each.
Required
Assuming that the amount of rent revenue from Condo 2 is $100,000, what amount of income did it earn?
Note: Do not round intermediate calculations.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College