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 443 hours for Massive Airframes and 672 hours for Gigantic Drydocks. AB bills clients at the rate of $517 per hour; labor cost for its professional staff is $200 per hour Overhead costs in March totaled $41,390. Overhead is applied to clients at $42 per labor hour. In addition, AB had $198,500 in marketing and administrative costs. All transactions are on account. All Services were billed points ference Transaction Description KA Record Labor cost (b) Record Applied Service Overhead (c) Record Cont of services billed Record Actual Service Overhead Required: a. Show labor and overhead cost flows through T-accounts b. Prepare an income statement for the company for March Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Work in Process Bogbal 0 End bal 223.000 223,000 Bog bal ca) b) Endbal 269.000) 223,000 46,830 0 M MC 13 Show labor and overhead cost flows through T-accounts Beg bal 8 points Wages Payable 0 O 223,000) 223.000 Beg bal (a) b) End. bal Work In Process 0 0 223.000 209.830 (c) 46.830 0 End.bal Before Cost of Services Billed Service Overhead Control Beg bal Bog bol co) 269,800 5,440 Closing Endi bat 264.300 End bal 0 Applied Service OH Beba 0 46.830 46,830) [End, bal 0 Required 8 > 13 Complete this question by entering your answers in the tabs below. 8 points Required A Required B Prepare an income statement for the company for March Book Merce $ 576,455 ALLOCATION BUSTERS Income Statement For the Month Ended March 31 Service revenue Cost of services billed $ Subtract: Overapplied service overhead Gross margin Marketing and administration Operating profit 269,830 (5.440) $ 264,390 312,005 (198,500) 113,565 $ (Required A