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Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with govermment agencies. For March, AB worked 455 hours for Massive Airframes and 665 hours for Gigantic Drydocks. AB bills clients at the rate of $502 per hour, labor cost for its professional staff is $200 per hour Overhead costs in March totaled $41,520. Overhead is applied to clients at $44 per labor-hour. In addition, AB had $199,600 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 Record Actual Service Overhead Required a. Show labor and overhead cost flows through T-accounts Answer is not complete Wages Payable Work-In-Process Beg. bal Beg. bal 224,000 (a) 224,000 224,000 49,280 273,280 End. bal End. bal Cost of Services Billed Service Overhead Control Beg. bal Beg. bal 91,000 133,000 224,000 199,600 End. bal End. bal 199.600 Applied Service O.H Beg. bal 49.280 49,280 | (b) End. bal b. Prepare an income statement for the company for March. Answer is not complete. ALLOCATION BUSTERS Income Statement For the Month Ended March 31 Service revenue 562240 Cost of services billed Subtract: Overapplied service overhead Gross margin Marketing and administration Operating profit 472,880 $ 89,360