Farnsworth Executive Coaching (FEC) offers services to firms in advising executives on improving productivity and leadership. For August, FEC worked 666 hours for Grace Corporation and 396 hours for Temple Construction. In addition, FEC had small engagements with various clients totaling 131 hours. FEC bills clients at the rate of $630 per hour; labor cost for its professional staff is $305 per hour. Overhead costs in August totaled $73,500. Overhead is applied to clients at $65 per labor-hour. In addition, FEC had $179,400 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
(c)	Record cost of services billed
(d)	Record actual service overhead

Required:

Show labor and overhead cost flows through T-accounts.

Prepare an income statement for the company for August.