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Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 457

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Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 457 hours for Massive Airframes and 672 hours for Gigantic Drydocks. AB bills clients at the rate of $507 per hour, labor cost for its professional staff is $220 per hour. Overhead costs in March totaled $40,970. Overhead is applied to clients at $40 per labor-hour. In addition, AB had $198,000 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 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 Beg bal. Beg, bal End, bal 0 Endbal 0 Cost of Services Billed Service Overhead Control Beg. bal. Beg, bal End, bal End, ball 0 Applied Service O.H. Beg, bal End, bal 0 Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 457 hours for Massive Airframes and 672 hours for Gigantic Drydocks. AB bills clients at the rate of $507 per hour, labor cost for its professional staff is $220 per hour. Overhead costs in March totaled $40,970 Overhead is applied to clients at $40 per labor-hour. In addition, AB had $198,000 in marketing and administrative costs. All transactions are on account. All services were billed Transaction Description Record Labor cost (b) 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. Prepare an income statement for the company for March Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the company for March ALLOCATION BUSTERS Income Statement For the Month Ended March 31

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