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 $1,041,400 4,160,000 1,040,000 Of the $1,040,000 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. Job 101 102 103 Total manufacturing overhead Total marketing and administrative costs Direct Materials $ 137,800 99,000 94,600 Direct Labor $401,000 312,900 198,300 271,800 116,000 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 $ 30,500 $ 104,600 28,100 88,800 5,200 14,600 $ 63,800 $ 208,000 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 $760,000 and $562,000, 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. Answer is not complete. 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. Materials Inventory Wages Payable Beg. Bal. Beg. Bal. 137,800 101: DM 99,000 102: DM 94,600 103: DM 401,000 101: DL 312,900102: DL 198,300 103: DL End. Bal. 331,400 End. Bal 912,200 Variable Manufacturing Overhead Fixed Manufacturing Overhead 30,500 101: Variable 28,100 102: Variable 5,200 103: Variable : 63,800 104,600 101: Fixed 88,800102: Fixed 14,600 103: Fixed 208,000 End. Bal. End. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal. Total 101 Finished Goods Total DM Total 101 Finished Goods 331,400673,900 673,900 1,202,700Cost of Goods Sold Total DL 912,200 528,800 Total 102 Finished Goods Total 102 Finished Goods 528,800 Total Variable MOH Total Fixed MOH 63,800 208,000 End. Bal End. Bal 312,700 Cost of Goods Sold Beg. Bal. Finished Goods 1,202,700 End. Bal. 1,202,700 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.) Materials Inventory Wages Payable Beg. Bal. Beg. Bal. 137,800 101: DM 99,000 102: DM 94,600 103: DM 401,000 101: DL 312,900 102: DL 198,300 103: DL End. Bal 331,400 End. Bal 912,200 Actual Actual Variable Manufacturing Overhead 63,800 40,100 101: Variable 27,420 31,290 102: Variable 19,830103: Variable Overapplied Fixed Manufacturing Overhead 208,000 70,175 X 101: Fixed 54,758 % 102: Fixed 34,703 X 103: Fixed 48,364 X Underapplied End. Bal. End. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal. Total DM 331,400 649,075 Total 101 Finished Goods Total 101 Finished Goods 649,075 X 1,147,023 X Cost of Goods Sold Total DL 912,200 497,948 Total 102 Finished Goods Total 102 Finished Goods 497,948 X Total Variable MOH 91,220 Total Fixed MOH 159,636 X End. Bal. End. Bal. 347,433 Cost of Goods Sold Under-or Overapplied Overhead Beg. Bal. Beg. Bal. Finished Goods Underapplied 48,364 27,420 Overapplied 1,147,023 20,944 1,167,967 End. Bal. End. Bal. 20,944