b. Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31 For August, Royal Consulting and Mediation Practice (RCMP) worked 650 hours for Alberta Company and 1,550 hours for Ontario Corporation. RCMP bills clients at the rate of $510 per hour, labor cost for its consulting statt is $310 per hour. The total number of hours worked in August was 2,200, and overhead costs were $51,000. Overhead is applied to clients at $30 per labor-hour. In addition RCMP had $295,000 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 Record Actual Service Overhead Required a. Show labor and overhead cost flows through T-accounts 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 For August, Royal Consulting and Mediation Practice (RCMP) worked 650 hours for Alberta Company and 1,550 hours for Ontario Corporation. RCMP bills clients at the rate of $510 per hour, labor cost for its consulting statt is $310 per hour. The total number of hours worked in August was 2,200, and overhead costs were $51,000. Overhead is applied to clients at $30 per labor-hour. In addition RCMP had $295,000 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 Record Actual Service Overhead Required a. Show labor and overhead cost flows through T-accounts 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