For August, Royal Consulting and Mediation Practice (RCMP) worked 650 hours for Alberta Company and 1,450 hours for Ontario Corporation. RCMP bills clients at the rate of $590 per hour; labor cost for its consulting staff is $390 per hour. The total number of hours worked in August was 2,100, and overhead costs were $55,000. Overhead is applied to clients at $31 per labor-hour. In addition, RCMP had $335,000 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:

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

b. Prepare an income statement for the company for August.

For August, Royal Consuting and Mediation Prectice (RCMP) worked 650 hours for Alberta Company and 1.450 hours for Ontario Corporation. RCMP bils clients at the rate of $530 per hour; labor cost for its consulting stoft is $330 per hour. The total number of hours worked in August was 2,100, and ovemead costs were $55,000. Overhead is applied to clients at $31 per labor-hour. In addition, RCMP had $335,000 in marketing and administrative costs. All transactions are on account. All services were billed Recard Labor cost Rocard Appied Servico Overhend Rooord Cost of services billed Record Achual Service Overheod a) (dy Required: a. Show labor and overhead cost fiows through T-accounts. Wages Bog. bal. Bog. bal 819,000 65.100 End. ba End. bal of Services Bill Bog. bal Bog. bal End, bal End. ba Applied Service Bog. bal End. bal. b. Prepare an income statement for the company for August L CONSULTING AND MEDIATION Income Statement For the Month Ended August 31