Complete income statement using activity-based costing and

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Reference no: EM13387459

Wayne Shen established Windy City Placement Service (WCPS) to provide executive counseling and job placement services to its clients. Wayne charges a fee of $450.00 per hour for each service. The revenues and costs for the year are shown in the following income statement:

Wayne has kept good records of the following data for cost allocation purposes:

Required:

a. Complete the income statement using activity-based costing and WCPSs three cost drivers.

b. Recompute the income statement using direct labor-hours as the only allocation base (150 hours for executive counseling; 450 hours for placement services).

Reference no: EM13387459

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