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 hout, 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 (6) Record Applied Service Overhead (0) Record Cost of services billed (a) 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 Answer is not complete Complete this question by entering your answers in the tabs below. Required Required B Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Beg bal Beg bal (a) (a) 986,000 986,000 Work-In-Process 0 986,000 1,074 400 88,400 0 (C) End bal (b) End, bal Cost of Services Billed Service Overhead Control Beg bal (c) 1,074.400 Bog bal (d) 19,400 Closing > 69,000 Closing End bal 1,055,000 End bal 69,000 Applied Service OH Beg bal Closing End bu 88.400 0 88.400 (6) Regu Required B > Required A Required B Prepare an income statement for the company for August $ 1,666,000 ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31 Service revenue Cost of services billed $ 1,074,400 Subtract: Overapplied service overhead 19,400 Gross margin Marketing and administration Operating profit 1,055,000 $ 611,000 285,000 $ 326,000