The Rural Assistance Agency operates three major programs as responsibility cent

Question

The Rural Assistance Agency operates three major programs as responsibility centers -the Food Bank, Housing Services, and Credit Counseling. Clients pay a fee for services on a sliding scale based on income. The following information is drawn from the accounting records of the agency for the year ended September 30, 2017. Earned revenue from the three programs was as follows: Food Bank, $2,611,900; Housing Services, $1,237,400; and Credit Counseling, $87,000. Costs for the same period were: Food Bank, $9,632,800; Housing Services, $7,438,500; and Credit Counseling, $2,391,000 Required Prepare a statement of net cost for the Rural Assistance Agency for the year ended September 30, 2017 Answer is not complete RURAL ASSISTANCE AGENCY Statement of Net Cost For the Year Ended September 30, 2017 Food Bank Costs Less: Earned Revenue Net Cost 7,020.900 Housing Services Costs Less: Earned Revenue Net Cost 6.20 1.100 Credit Counseling Costs Less: Earned Revenue Net Cost 2.391000 2.304.000 Total Costs Less: Earned Revenue Net Cost of Operations 2,391,000 0 2,391,000

Explanation / Answer

As understood from the question we have 3 services from Rural Assistance agency.

1.Food Bank

2.Housing Services

3.Credit Counseling

Note: Net cost = Cost -Revenue

Food Bank

costs -> 96,32,800

Earned Revenue -> 26,11,900

Net cost -> 70,20,900

Housing services

costs -> 74,38,500

Earned Revenue -> 12,37,400

Net cost -> 62,01,100

Credit counselling

costs -> 23,91,000

Earned Revenue-> 87,000

Net cost -> 23,04,000

So Totally For Rural Assistance Agency on whole(i.,e. across 3 services)

Total Cost -> 19,462,300

Earned Revenue -> 39,36,300

Net Cost -> 15,526,000

  

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