For August, Royal Consulting and Mediation Practice (RCMP) worked 750 hours for Alberta Company and 1,850 hours for Ontario Corporation RCMP bills clients at the rate of $580 per hour labor cost for its consulting staff is $380 per hour The total number of hours worked in August was 2,600, and overhead costs were $58,000 Overhead is applied to clients at $28 per labor hour In addition, RCMP had $330,000 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 Show labor and overhead cost flows through T accounts Wages Payable Work In Process Beg bal Beg bal End, bal 0 End bal 0 Cost of Services Billed Service Overhead Control Beg bal Beg bal End bal 0 End bal 0 Applied Service O H Beg bal End bal 0 Prepare an income statement for the company for August ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31

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For August, Royal Consulting and Mediation Practice (RCMP) worked 750 hours for Alberta Company and 1,850 hours for Ontario Corporation. RCMP bills clients at the

For August, Royal Consulting and Mediation Practice (RCMP) worked 750 hours for Alberta Company and 1,850 hours for Ontario Corporation. RCMP bills clients at the rate of $580 per hour; labor cost for its consulting staff is $380 per hour. The total number of hours worked in August was 2,600, and overhead costs were $58,000. Overhead is applied to clients at $28 per labor-hour. In addition, RCMP had $330,000 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.

image text in transcribed

Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg. bal. Beg. bal. End, bal. 0 End. bal. 0 Cost of Services Billed Service Overhead Control Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Applied Service O.H. Beg. bal. End. bal. 0 Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31