Brighton Services repairs locomotive engines. It employs 100 full-time workers at S20 per hour Despite operating at capacity, last year's performance was a great disappointment to the managers Intotal, 10 jobs were accepted and completed, incurring he following total costs $1 007 400 Dired materials Dired labia 4400 000 00000 Of the $1,100,000 manufacturing overhead, 30 percent was vanable overhead and 70 percent was txed This year, Brig Services expects lo operale al the sar e acuvily level as last year, and overhead uosls arld the wage rate are not expected lo change. For lhe lirsl quarter of this year, Brig lon Services compleled twu jobs and was beginning the Unird (Job 03). The costs incurred follow. Job aterials. 137,400 S500,000 95,000 312,400 94,200 gr 100 otal manutactunng overhead lotal marketing and administrative costs You are a consultant associated with Lodi Consultants, which Brighton Servces has asked for help. Lod's senior partne has examined Brighton Services's accounts and has decided to divide actual factory overhead by job fixed and variable portions into as follows Actual Manufacturing Owerhe S 104,200 27,700 88400 4,800 6,20 62,800 S20E,a00 In the Mirsl quarter of this year, 40 percent markeling and ad strative cost was variable and 60 percent was fixed. You are lold Unal Jobs 101 and 102 were sold for S854,000 and S554,000, respeclively. Al over- or under applied overhead for the quarter is written off to Cost of Goods Sold