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Grindgood Company Operates a Chain of Cozy Coffee Shops Required

question 122

Essay

Grindgood Company operates a chain of cozy coffee shops. The company's chief executive officer is interested in accumulating some information on the overhead costs incurred by the company. You have been asked to analyze the following six months worth of data.
$\begin{array}{|l|c|c|} \hline& \text { Overhead } & \text { No. of } \\\hline \text { Month } & \text { cost } & \text { Labor Hours } \\\hline \text { April } & \$ 60,160 & 867\\\hline \text { May } & 56,500 & 624 \\\hline \text { June } & 58,900 & 689 \\\hline \text { July } & 63,500 & 974 \\\hline \text { August } & 59,325 & 730 \\\hline \text { September } & 62,400 & 901 \\\hline\end{array}$ Required:
$Grindgood Company operates a chain of cozy coffee shops. The company's chief executive officer is interested in accumulating some information on the overhead costs incurred by the company. You have been asked to analyze the following six months worth of data. \begin{array}{|l|c|c|} \hline& \text { Overhead } & \text { No. of } \\ \hline \text { Month } & \text { cost } & \text { Labor Hours } \\ \hline \text { April } & \$ 60,160 & 867\\\hline \text { May } & 56,500 & 624 \\ \hline \text { June } & 58,900 & 689 \\ \hline \text { July } & 63,500 & 974 \\ \hline \text { August } & 59,325 & 730 \\ \hline \text { September } & 62,400 & 901 \\ \hline \end{array} Required:$

Definitions:

Unearned Fees

Income received by a business for services that have yet to be performed or delivered, considered a liability until the service is completed.

Unearned Revenue

Money received by a company for goods or services that have yet to be provided to the customer.

Accrued Wages

Salaries or wages that have been earned by employees but have not yet been paid by the company.

Net Income

What a company ultimately earns in profit once expenses and taxes are removed from its total income.