Paul & Evan, a consulting firm, specializes in providing internal audit services for its clients. It bills the clients $$163$ per hour for its

professional services; it costs the firm $$88$ per hour to cover the cost of its staff. To cover its MOH costs, the partners have always

applied MOH costs to clients based on total direct labor hours. At the beginning of the year, they budgeted for $8,800$ direct labor

hours and $$169,840$ of MOH costs.

In the current year, the firm's professional staff worked on three key client projects: All Ways, Inc., for $3,300$ hours; My Way, Inc., for

$2,800$ hours; and High Way, Inc., for $5,000$ hours. These clients were billed for this work by the end of the year.

Naturally, there were other costs incurred to run the firm, including sales and marketing costs, which added up to $$133,000$ this year.

Actual MOH costs for the year totaled $$143,000.$

$($a$)$

$($b$)$

Prepare an income statement for the firm for the current year.