7-59 (Algo) Cost Flows through Accounts (LO 7-2, 3, 4) Brighton Services repairs locomotive engines. It employs 100 full-time workers at $16 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 $1,039,400 3,840,000 960,000 Of the $960,000 manufacturing overhead, 30 percent was variable overhead and 70 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 201 102 103 Direct Direct Materials Labor $137,600 $520,000 97,000 312,500 94,400 198,000 Total manufacturing overhead Total marketing and administrative costs 271,500 116,000 You are a consultant associated with Lodi Consultants, which Brighton Services has asked for help. Lodis 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. Actual Manufacturing Overhead Variable 181 182 $ 10,300 Fixed $ 104,400 27,900 88,600 Job Direct Direct Materials Labor 101 102 103 Total manufacturing overhead Total marketing and administrative costs $137,600 $520,000 312,500 97,000) 94,400 198,000 271,600 116,000 You are a consultant associated with Lodi Consultants, which Brighton Services has asked for help. Lodr'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. Actual Manufacturing Overhead Fixed 101 102 103 Variable $ 38,308 27,900 5,000 $ 63,200 $ 104,400 88,600 15,400 $208,400 In the first quarter of this year, 40 percent of marketing and administrative cost was variable and 60 percent was fixed. You are told that Jobs 101 and 102 were sold for $880,000 and $558,000, 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year. Beg Bal Materials Inventory End. Bal Variable Manufacturing Overhead Beg. Bal End. Bal Wages Payable Fixed Manufacturing Overhead End. Bal End Bal Work-in-Process Inventory Finished Goods Inventory Beg. Bal Beg Bal End Bal Cost of Goods Sold End Bal Variable Manufacturing Overhead End: Bal Fixed Manufacturing Overhead End. Bal End. Bal Work-in-Process Inventory. Finished Goods Inventory Beg Bal Beg. Bal Cost of Goods Sold End. Bal Beg. Bal Finished Goods End Bai Cost of Goods Sold End Bal Required B> In the first quarter of this year, 40 percent of marketing and administrative cost was variable and 60 percent was fixed. You that Jobs 101 and 102 were sold for $880,000 and $558,000, respectively. All over- or underapplied overhead for the quart 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 p 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 overt derived in requirement (b) d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Complete this question by entering your answers in the tabs below. Required A Required B Required C 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.) Variable overhead rate Fixed overhead rate Predetermined Overhead Rate (Per Direct Labor-Hour) < Required A Required C > Complete this question by entering your answers in the tabs below. 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). (Do no calculations and Round your final answers to nearest whole dollar amounts.) Beg Bal End. Bal End Bal Materials Inventory Variable Manufacturing Overhead Beg Bal End Bal End Bal Wages Payable Fixed Manufacturing Overhead Work-in-Process Inventory Beg Bal Finished Goods Inventory Beg Bal < Prev 9 of 14 Next > Cost of Goods Sold End. Bal Variable Manufacturing Overhead Fixed Manufachuring Overhead End. Bal Work in Process Inventory Finished Goods Inventory Beg Bal Beg. Bal End. Bal Beg Bal Finished Goods End, Bal End. Bal Cost of Goods Sold Under or Overapplied Overhead Beg Bal End. Bal Cost of Goods Sold In the first quarter of this year, 40 percent of marketing and administrative cost was variable and 60 percent was fixed. You are told that Jobs 101 and 102 were sold for $880,000 and $558,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold. Required: 8. 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. Complete this question by entering your answers in the tabs below. Required A Required B Required C 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.) Operating profit (loss) Actual Normal