Question

The Red Wolf Society, a nongovernmental not-for-profit organization, receives numerous contributed hours from volunteers during its busy season. Tom, a clerk at the local government utility’s office, volunteered ten hours per week for 8 weeks transferring wolf food from the port to the wolf shelter. His rate of pay at the utility office is $20 per hour, and the prevailing wage rate for laborers is $15 per hour. What amount of contribution revenue should Red Wolf Society record for this service? Multiple Choice $1,200 $400 $1,600 $0

Answer 1

Answer:

$1,600

Explanation:

Revenue is recognized as and when the control of a good or service is transferred to the customer.

Total Hours = 10 hours × 8 weeks

                    = 80 hours

Use the rate of pay at the utility office to determine the contribution revenue for Red Wolf Society

Revenue = 80 hours × $20 per hour

               = $1,600