Cindy Duncan is a social worker on the staff of Military Family Center, a voluntary welfare organization. She earns $42,000 annually for a normal workload of 2,000 hours. During 2017 she contributed an additional 800 hours of her time to Military Family Center at no extra charge. How much should Military Family Center record in 2017 as contributed service expense?

Question

Quizplus · Accepted Answer

The contributed service expense should be calculated based on the additional hours worked by Cindy Duncan. She worked 800 extra hours. Her hourly rate is $42,000 / 2,000 hours = $21 per hour. Therefore, the contributed service expense is 800 hours * $21/hour = $16,800.

Cindy Duncan Is a Social Worker on the Staff of Military