For August, Royal Consulting and Mediation Practice (RCMP) worked 750 hours for Alberta Company and 1,950 hours for Ontario Corporation. RCMP bills clients at the rate of $420 per hour; labor cost for its consulting staff is $220 per hour. The total number of hours worked in August was 2,700, and overhead costs were $62,000. Overhead is applied to clients at $29 per labor-hour. In addition, RCMP had $250,000 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. Wages Payable Work-In-Process Beg. bal. 0 0 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 Required A Required B Prepare an income statement for the company for August. ROYAL CONSULTING AND MEDIATION PRACTICE Income Statement For the Month Ended August 31 Service revenue Cost of services billed Subtract: Overapplied service overhead Gross margin Marketing and administration Operating profit