Job Costing in a Service Organization For August, Regal Consulting Services (RCS) worked 900 hours for Ernst Company and 2,100 hours for Julius Corporation. RCS bills clients at the rate of \($210\) per hour; labor cost for its audit staff is \($105\) per hour. The total number of hours worked in September was 3,000, and overhead costs were \($30,000.\) Overhead is applied to clients at \($18\) per labor-hour. In addition, RCS had \($126,000\) in marketing and administrative costs. All transactions are on account. All services were billed.

Required

a. Show labor and overhead cost flows through T-accounts.

b. Prepare an income statement for the company for August.