Business, 07.03.2020 01:41 alex12everett
August For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $400 per hour; labor cost for its consulting staff is $200 per hour. The total number of hours worked in August was 3,000, and overhead costs were $60,000. Overhead is applied to clients at $24 per labor-hour. In addition, RCMP had $240,000 in marketing and administrative costs. All transactions are on account. All services were billed.
Required
a. Show labor and overhead cost flows through T-accounts.
b. Prepare an income statement for the company for August.
Answers: 3
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August For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Compa...
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