Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 458 hours for Massive Airframes and 680 hours for Gigantic Drydocks. AB bills clients at the rate of $504 per hour; labor cost for its professional staff is $210 per hour. Overhead costs in March totaled $41,590. Overhead is applied to clients at $44 per labor-hour. In addition, AB had $199,000 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.

b. Prepare an income statement for the company for March.

Check my work 12 Income Statement For the Month Ended March 31 Service revenue $ 573,552 points Subtract: Overapplied service overhead Gross margin Marketing and administration Operating profit 199,000 eBook References 12 jugh T-accounts. Work-In-Process Beg. bal. 238,910 8 points 238,910 eBook End. bal. 0 References Service Overhead Control Beg. bal. 41,590 41,590 End. bal. 0 12 sugh T-accounts. Work-In-Process Beg. bal. 238,910 8 points 238,910 eBook End. bal. 0 References Service Overhead Control Beg. bal. 41,590 41,590 End. bal. 0 Check my work 12 Snow labor and overneaa co Wages Payable 238,910 Beg. bal. 238,910 8 points End. bal. 0 eBook Cost of Services Billed References Beg. bal. 573,552 573,552 End. bal. 0 Beg. bal. Applied Service O.H. 50,072 50,072 0 End. bal