10.00 points Wendy Chen established Windy City Coaching (WCC) to provide teen co

Question

10.00 points 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 Counseling Coaching $144,000 Teen Total $63,000 $207,000 Administrative support Transportation, etc Equipment Profit 43,000 31,680 24,700 $107,620 WCC has kept good records of the following data for cost allocation purposes: Level Teen Executive Activity Providing administrative support Traveling Using equipment Cost Driver Number of clients Number of visits Computer hours 140 80 1,100

Explanation / Answer

a.

b.

Total expenses = $43,000 + 31,680 + 24,700 = $99,380

Account Teen Counseling Executive Coaching Total Revenue $63,000 $144,000 $207,000 Expenses: Administrative support 43,000 /10 x 6 = 25,800 43,000 /10 x 4 = 17,200 43,000 Transportation, etc 31,680 / 220 x 80 = 11,520 31,680 / 220 x 140 = 20,160 31,680 Equipment 24,700 / 1,900 x 1,100 = 14,300 24,700 / 1,900 x 800 = 10,400 24,700 Profit $11,380 $96,240 $107,620

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