Youth Athletic Services (YAS) provides adult supervision for organized youth athletics. It has a president, William Mayes, and fi ve employees. He and one of the other fi ve employees manage all marketing and administrative duties. The remaining four employees work directly on operations. YAS has four service departments: managing, offi ciating, training, and dispute resolution. A time card is marked, and records are kept to monitor the time each employee spends working in each department. When business is slow, there is idle time, which is marked on the time card. (It is necessary to have some idle time because some direct labor-hours must be available to accommodate fluctuating peak demand periods throughout the day and the week.) Some of the July operating data are as follows:
Idle TimeManagingOfficiatingTrainingDisp ute Resolution
Sales revenue $8,550$9,500$4,300$1,800
Direct labor (in hours)10 290 95 140 105
Direct overhead traceable to departments
Equipment $1,110$1,035$860$45
Supplies 360 460 410 360
Transportation 535 1,160 260 65
Other Data
The four employees working in the operating departments all make $20 per hour.
The fifth employee, who helps manage marketing and administrative duties, earns $3,050 per month, and William earns $3,800 per month.
Indirect overhead amounted to $1,024 and is assigned to departments based on the number of direct labor-hours used. Because there are idle hours, some overhead will not be assigned to a department.
In addition to salaries paid, marketing costs for items such as advertising and special promotions totaled $760.
In addition to salaries paid, other administrative costs were $305.
All revenue transactions are cash; all others are on account.
Required:
Management wants to know whether each department is contributing to the company’s profit. Prepare an income statement for July that shows the revenue and cost of services for each department. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.)
I am looking for direct overhead of managing, officiating, training, dispute resoltion.
I am also looking for unassinged labor costs, unassigned overhead indirect costs, marketing administrative costs.