Exercise 9-47 (Algo) Activity-Based versus Traditional Costing-Ethical Issues (LO 9-3, 4, 5) Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a $300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement. WINDY CITY COACHING Income Statement Teen Executive Counseling Coaching Total Revenue $66, 000 $123 , 000 $189, 000 Expenses: Administrative support 42, 000 Transportation, etc 31, 740 Equipment 17, 000 ces Profit $ 98, 260 WCC has kept good records of the following data for cost allocation purposes. Activity Level Teen Executive Activity Cost Driver Counseling Coaching Providing administrative support Number of clients 6 4 Traveling Number of visits 80 150 Using equipment Computer hours 900 800 Required: a. Complete the income statement using activity-based costing and WCC's three cost drivers. b. Recompute the income statement using direct labor-hours as the only allocation base (240 hours for teen counseling; 390 hours for executive coaching)