Exercise 7-41 (Algo) Job Costing in a Service Organization (LO 7-4) For August, Royal Consulting and Mediation Practice (RCMP) worked 1100 hours for Alberta Company and 2,300 hours for Ontario Corporation RCMP bills clients at the rate of $490 per hour; labor cost for its consulting staff is $290 per hour. The total number of hours worked in August was 3,400, and overhead costs were $69,000. Overhead is applied to clients at $26 per labor-hour. In addition, RCMP had $285,000 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 Record Cost of services billed (d) Record Actual Service Overhead Required: o. Show labor and overhead cost flows through T-accounts b. Prepare an income statement for the company for August 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 End bal Cost of Services Billed Service Overhead Control Beg bal Beg bal. 0 End, bal. End bal Applied Service O.H. Beg bal End bal Complete this question by entering your answers in the tabs below. Required A Required B Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31