#4-AP

DO NOT HURRY!!! NEED THE CORRECT SOLUTIONS BY TOMORROW!

Brighton Services repairs locomotive engines. It employs 100 full-time workers at $15 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In total, 10 jobs were accepted and completed, incurring the following total costs. Direct materials Direct labor Manufacturing overhead $1,040,400 3,750,000 937,500 Of the $937,500 manufacturing overhead, 40 percent was variable overhead and 60 percent was fixed. This year, Brighton Services expects to operate at the same activity level as last year, and overhead costs and the wage rate are not expected to change. For the first quarter of this year, Brighton Services completed two jobs and was beginning the third (Job 103). The costs incurred follow. Job 101 102 103 Direct Materials $ 137,700 98,000 94,500 Direct Labor $400,000 312,800 198,300 271,700 115,000 Total manufacturing overhead Total marketing and administrative costs You are a consultant associated with Lodi Consultants, which Brighton Services has asked for help. Lodi's senior partner has examined Brighton Services's accounts and has decided to divide actual factory overhead by job into fixed and variable portions as follows. 101 102 103 Actual Manufacturing Overhead Variable Fixed $ 30,400 $ 104,500 28,000 88,700 5, 100 15,000 $ 63,500 $ 208,200 In the first quarter of this year, 30 percent of marketing and administrative cost was variable and 70 percent was fixed. You are told that Jobs 101 and 102 were sold for $765,000 and $560,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold. Required: a. Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. b. Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. c. Present in T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Required A Required B Required Required D Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. Materials Inventory Wages Payable Beg. Bal. Beg. Bal. 101: DM End. Bal. 102: DM End. Bal. 103: DM Variable Manufacturing Overh Fixed Manufacturing Overhead End. Bal. End. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal Cost of Goods Sold End. Bal. End. Bal. Cost of Goods Sold Beg. Bal. Finished Goods End. Bal. Required a Required B Required Required D Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. (Round your answers to 2 decimal places.) Predetermined Overhead Rate (Per Direct Labor-Hour) Variable overead rate Fixed overhead rate Required A Required B Required C Required D Present in T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). calculations and Round your final answers to nearest whole dollar amounts.) Materials Inventory Wages Payable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Variable Manufacturing Overhead Fixed Manufacturing Overhead 101: Variable 102: Variable 103: Variable End. Bal Overapplied Underapplied Beg. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal. Cost of Goods Sold End. Bal. End. Bal. Cost of Goods Sold Under-or Overapplied Overhead Beg. Bal. Beg. Bal. Finished Goods End. Bal. End. Bal. Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. (Round your final answers to nearest whole dollar amounts. Loss amounts should be indicated with a minus sign.) Actual Normal Operating profit (loss)