Brighton Services repairs locomotive engines. It employs 100 full-time workers at $18 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 ,400 40,000 Manufacturing overhead 1.260.000 Of the $1,260,000 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 Direct Materials $138,000 $496,000 101,000 94,800 Direct Job 101 102 103 Labor 312,800 198,700 272,000 Total manufacturing overhead Total marketing and administrative Costs 118,000 onsultant associated with Lodi Consultants, wi ghton Services has asked for help. You and ed to divide actual factory overhead by job into fixed and variable portions as foll Lodi's senior partner has examined Brighton Services's accounts Ws: Actual Manufacturing Overhead $104 89,000 13,800 101 102 103 28,300 5,400 $64,400 $207,600 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 $862,000 and $566,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold. Required: Required: a. 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. End. bal. End, bal. Fixed Manufacturing Overhead Variable Manufacturing Overhead End. bal End. bal. Work-in-Process Inventory Finished Goods Inventory Beg. bal. Beg. bal. Total DM Cost of goods sold Total DL End, bal. End. bal. Cost of Goods Sold Beg. bal. Finished Goods End. bal. 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. (Round your answers to 2 decimal places.) Predetermine Overhead Rate (Per Direct Labor-Hour) Variable overhead rate Fixed overhead rate 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). (Do not round intermediate calculations.) Materials Inventory Wages Payable Beg. bal. Beg. bal. End. bal End. bal Variable Manufacturing Overhead Fixed Manufacturing Overhead End, bal. End. bal. Finished Goods Inventory Work-in-Process Inventory Beg. bal. Beg. bal. Cost of goods sold End. bal. End. bal Cost of Goods Sold Under-or Over-Applied Overhead Beg. bal. Beg. bal. Finished Goods End. bal. End. bal d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Actual Normal