Ryan Brooks Architecture does custom architectural designs for individuals and corporations. The company employs two assistants, who are paid $30 per hour. Clients are billed $100 per hour for the work of the assistants and $150 per hour for Mr. Brooks' design services. During July 2007, the assistants worked a total of 300 hours for Bridgewater Savings Bank and 200 hours for a custom designed house for Mr. and Mrs. Rodman. Mr. Brooks worked 200 hours, spending 75% of his time on the Bridgewater Savings Bank job and 25% on Mr. and Mrs. Rodman's job. There were 100 labor hours that were not billable to clients. Overhead costs of $20,000 were incurred and assigned to clients on the basis of labor hours. Marketing and administrative costs were $35,000.
Required:
(a) Compute the revenue and cost for each client.
(b) Prepare an income statement for July, 2007.

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The Answer of Ryan Brooks Architecture does custom architectural designs for individuals and corporations. The company employs two assistants, who are paid $30 per hour. Clients are billed $100 per hour for the work of the assistants and $150 per hour for Mr. Brooks' design services. During July 2007, the assistants worked a total of 300 hours for Bridgewater Savings Bank and 200 hours for a custom designed house for Mr. and Mrs. Rodman. Mr. Brooks worked 200 hours, spending 75% of his time on the Bridgewater Savings Bank job and 25% on Mr. and Mrs. Rodman's job. There were 100 labor hours that were not billable to clients. Overhead costs of $20,000 were incurred and assigned to clients on the basis of labor hours. Marketing and administrative costs were $35,000.
Required:
(a) Compute the revenue and cost for each client.
(b) Prepare an income statement for July, 2007.

Ryan Brooks Architecture Does Custom Architectural Designs for Individuals and Corporations