7. value: 10.00 points For August, Royal Consulting and Mediation Practice (RCMP) worked 850 hours for Alberta Company and 2,050 hours for Ontario Corporation. RCMP bills clients at the rate of 5440 per hour; labor cost for its consulting staff is $240 per hour. The total number of hours worked in August was 2,900, and overhead costs were $64,000. Overhead is applied to clients at $26 per labor-hour. In addition, RCMP had $260,000 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description Record Labor cost Record Applied Service Overhead Record Cost of services billed (d) Record Actual Service Overhead Required: a. Show labor and overhead cost flows through T-accounts. (b) (c) Wages Payable Work-In-Process Beg. bal. Beg bal. End. bal. End. bal. Cost of Services Billed Service Overhead Control Beg. bal. Beg bal End. bal. End. bal. Applied Service O.H. Beg. bal. End. bal. b. Prepare an income statement for the company for August ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31