Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,885 hours to clients and worked a total of 1,940 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $325 per hour; labor cost for its professionals averaged $155 per hour in January. Overhead costs in January totaled $116,350. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,100 in marketing and administrative costs (not including the professional labor time as described). 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:

1. Show labor and overhead cost flows through T-accounts.
2. Make an income statement for the company for January.