Reference no: EM131149628
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 C
redit 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.
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