Job Costing Project Description: Youth Athletic Services (YAS) provides adult supervision for organized youth athletics.

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Job Costing
Project Description:
Youth Athletic Services (YAS) provides adult supervision for
organized youth athletics. It has a president, William Mayes, and
five employees. He and one of the other five employees manage all
marketing and administrative duties. The remaining four employees
work directly on operations. YAS has four service departments:
managing, officiating, 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 Time
Managing
Officiating
Training
Dispute Resolution
Sales revenue
$8,850
$9,800
$4,400
$2,100
Direct labor (in hours)
25
320
110
155
120
Direct overhead traceable to departments:
Equipment
$1,140
$1,065
$890
$15
Supplies
$390
$490
$440
$390
Transportation
$565
$1,190
$275
$80
Other Data:
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. To get
more information on Job Costing in service organizations, refer to
your textbook (Chapter 7 pp. 286, 296-298).
YOUTH ATHLETIC SERVICES
INCOME STATEMENT
For Month Ending July 31
Managing
Officiating
Training
Dispute Resolution
Total
Revenue
Cost of Services:
Labor
Direct Overhead
Indirect Overhead
Total costs of services
Department margin
Less other costs:
Unassigned labor costs
Unassigned overhead indirect
costs
Marketing and administrative
costs
Operating profit (loss)