Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement. WINDY CITY COACHING Income Statement Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A

Question
Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC
charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement.
WINDY CITY COACHING
Income Statement
Executive
Тeen
Total
Counseling
$69,000
Coaching
$144,000
$213,000
Revenue
Expenses:
Administrative support
50,400
44,080
18,700
Transportation, etc
Equipment
99,820
Profit
WCC has kept good records of the following data for cost allocation purposes.
Activity Level
Executive
Teen
Counseling
Activity
Providing administrative support
Traveling
Using equipment
Cost Driver
Coaching
Number of clients
7
5
Number of visits
120
170
Computer hours
800
900
Required:
a. Complete the income statement using activity-based costing and WCC's three cost drivers.
b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for
executive coaching).
Required A
Required B
Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate
calculations.)
Teen
Executive
Account
Total
Counseling
Coaching
$
$
Revenue
69,000
144,000
213,000
Expenses:
Administrative support
50,400
Transportation, etc
44,080
Equipment
18,700
$
99,820
Profit
Required A
Required B
Required A
Required B
Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490
hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole
dollar.)
Teen
Executive
Coaching
Total
Account
Counseling
Revenue
$
$
$
69,000
144,000
213,000
Expenses
113,180
$
99,820
Profit
Required B>
Required A
Expand
Transcribed Image Text

Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement. WINDY CITY COACHING Income Statement Executive Тeen Total Counseling $69,000 Coaching $144,000 $213,000 Revenue Expenses: Administrative support 50,400 44,080 18,700 Transportation, etc Equipment 99,820 Profit WCC has kept good records of the following data for cost allocation purposes. Activity Level Executive Teen Counseling Activity Providing administrative support Traveling Using equipment Cost Driver Coaching Number of clients 7 5 Number of visits 120 170 Computer hours 800 900 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). Required A Required B Complete the income statement using activity-based costing and WCC's three cost drivers. (Do not round intermediate calculations.) Teen Executive Account Total Counseling Coaching $ $ Revenue 69,000 144,000 213,000 Expenses: Administrative support 50,400 Transportation, etc 44,080 Equipment 18,700 $ 99,820 Profit Required A Required B Required A Required B Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 490 hours for executive coaching). (Do not round intermediate calculations and round your final answers to the nearest whole dollar.) Teen Executive Coaching Total Account Counseling Revenue $ $ $ 69,000 144,000 213,000 Expenses 113,180 $ 99,820 Profit Required B> Required A

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