Exercise 7-43 (Algo) Job Costing in a Service Organization (LO 7-4) TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In August, IT professionals billed 880 hours to clients and worked a total of 930 hours (the difference includes time for training, preparing bids, and so on, which are considered administrative costs). TechMaster bills clients at the rate of $210 per hour; labor cost for its IT professionals is $80 per hour. Overhead costs in August totaled $36,000. Overhead is applied to clients at $46 per labor-hour. In addition, TechMaster had $56,000 in marketing and administrative costs (including labor time as described). All transactions are on account. All services were billed. Required: a. 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. Show labor and overhead cost flows through T-accounts. Exercise 7-43 (Algo) Job Costing in a Service Organization (LO 7-4) TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In August, IT professionals billed 880 hours to clients and worked a total of 930 hours (the difference includes time for training, preparing bids, and so on, which are considered administrative costs). TechMaster bills clients at the rate of $210 per hour; labor cost for its IT professionals is $80 per hour. Overhead costs in August totaled $36,000. Overhead is applied to clients at $46 per labor-hour. In addition, TechMaster had $56,000 in marketing and administrative costs (including labor time as described). All transactions are on account. All services were billed. Transaction Description (a)(b)(c)(d)RecordLaborcostRecordAppliedServiceOverheadRecordCostofservicesbilledRecordActualServiceOverhead Required: a. 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. Prepare an income statement for the company for August