Exercise 7-45 (Algo) Job Costing in a Service Organization (LO 7-4) Farnsworth Executive Coaching (FEC) offers services to firms in advising executives on improving productivity and leadership. For August, FEC worked 676 hours for Grace Corporation and 406 hours for Temple Construction. In addition, FEC had small engagements with various clients totaling 141 hours. FEC bills clients at the rate of $680 per hour, labor cost for its professional staff is $355 per hour. Overhead costs in August totaled $74,000. Overhead is applied to clients at $65 per labor-hour. In addition, FEC had $179,650 in marketing and administrative costs. 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