TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In August, IT professionals billed 885 hours to clients and worked a total of 940 hours (the difference includes time for training, preparing bids, and so on, which are considered administrative costs). TechMaster bills clients at the rate of $220 per hour; labor cost for its IT professionals is $85 per hour. Overhead costs in August totaled $37.000. Overhead is applied to clients at $47 per labor-hour. In addition, Tech Master had $57,000 in marketing and administrative costs (including labor time as described above). All transactions are on account. All services were billed. Transaction Description Record Labor cost Record Applied Service Overhead Record Cost of services billed Record Actual Service Overhead (c) Required: a. Show labor and overhead cost flows through T-accounts. Wages Payable Work-In-Process Beg, bal Beg. bal. End, bal. End. bal. 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 b. Prepare an income statement for the company for August. TechMaster Income Statement For the Month Ended August 31