In October, Temptations Event Planners $($TEP$)$ planned events for two clients. TEP worked $140$ hours for Ward Corporatlon and $240$

hours for Girardin Industrles. TEP bills clients at the rate of $$350$ per hour, labor cost for its planning staff is $$140$ per hour. The total

number of hours worked In October was $380,$ and overhead costs were $$15,600.$ Overhead is applied to clients at $$32$ per planner$-$

hour. In addition, TEP had $$27,000$ in marketing and administrative costs. All transactions are on account. All services were billed.

Transaction

$($a$)$

$($b$)$

$($c$)$

$($d$)$

Description

Record labor cost

Record applied service overhead

Record cost of services billed

Record actual service overhead

Requlred:

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

b$.$ Prepare an Income statement for the company for October.

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

Requifled $B$

Prepare an income statement for the company for October.