Farnsworth Executive Coaching $($FEC$)$ offers services to firms in advising executives on improving productivity and leadership. For August, FEC worked $700$ hours for Grace Corporation and $430$ hours for Temple Construction. In addition, FEC had small engagements with various clients totaling $165$ hours. FEC bills clients at the rate of $$800$ per hour; labor cost for its professional staff is $$475$ per hour. Overhead costs in August totaled $$75,200.$ Overhead is applied to clients at $$65$ per labor$-$hour. In addition, FEC had $$180,250$ in marketing and administrative costs. All transactions are on account. All services were billed.

$\backslash$table$[[$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 August.

Complete this question by entering your answers in the tabs below.

Required A

Show labor and overhead cost flows through T$-$accounts.