Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 450 hours for Massive Airframes and 674 hours for Gigantic Drydocks. AB bills clients at the rate of $509 per hour; labor cost for its professional staff is $210 per hour. Overhead costs in March totaled $40,180. Overhead is applied to clients at $40 per labor-hour. In addition, AB had $198,600 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 (d) Record Actual Service Overhead

Required:

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

Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process 0 0 0 Beg. bal. (a) End. bal. 0 236,040 236,040 (a) 236,040 Beg. bal. (a) (b) End. bal. 0 281,000 (C) 0 (6) 44,960 Beg. bal. (c) Cost of Services Billed 0 0 281,000 4,780 (c) Beg. bal. Service Overhead Control 01 0 40,180 40,180 0 0 0 End. bal. 276,220 End. bal 0 Applied Service O.H. 0 Beg. bal. (b) End. bal. 0 44,960 (b) 44,960