13.

Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies For March, AB worked 453 hours for Massive Airframes and 668 hours for Gigantic Drydocks. AB bills clients at the rate of $515 per hour labor cost for as professional staff is $210 per hour Overhead costs in March totaled $40,830 Overhead is applied to clients at $40 per labor hour In addition AB had $199, 300 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description (a) Record Labor cost (b) Record Applied Service Overhead (C) Record Cost of services billed (0) Record Actual Service Overhead Required: a. Show labor and overhead cast flows through T-accounts b. Prepare an income statement for the company for March Required A Required B Prepare an Income statement for the company for March. ALLOCATION BUSTERS Income Statement For the Month Ended March 31