Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $14 per hour. Despite operating at capacity, last year's performance was a great disappointment
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $14 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:
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $14 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 $1,052,400 3,640,000 040,000 Of the $1,040,000 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 Direct Direct Labo Job 101 102 103 Total manufacturing overhead Total marksting and administrative costs S 138,900 S410,000 110,000 314,500 5,700 195,200 272,900 127,000 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 Actual M Fixed 101 102 103 S 31,600 29,200 6,300 5 67,100 S 105,700 89,900 10,200 S 205,800 in the tirst quarter or this year, 30 percent ot marketing and administrative cost was variable and 70 percent was fxed. You are told that Jobs 101 and 102 were sold tor $780,000 and $584,000, respectively. All over- or underapplied overhead for the quarter is wntten oft to Cost or Goods Sold. Required: a. Present in T-accounts the actuai manufacturing cost fiows for the three jobs in the first quarter of this year Required: a. Present in T-accounts the actuai manufacturing cost flows for the three jobs in the first quarter of this year. Materials In Wages Payable Beg bal Beg bal. End, bal End bal Variable Manufacturing Overhead Fixed Manufacturing Overhead End. bal End. ba Work-in-Process Inventory Finished Goods Inventory Beg. bal Beg. bal. Cost of goods sold End. bal. End bal t of Goods Sold Beg. bal Finished Goods End. bal b. Using last years ovemead costs and direct labor-hours as this years estimate, calculate predetermined overhead rates per direct labor-hour for vaniable and fixed ovemead. (Round your answers to 2 decimal places.) Predetermined 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 Work-in-Process Inventory ished Goods Inventory Beg. bal Beg. bal Cost of goods sold End. bal. End ba t of Goods Sold Under-or Over-Applied Overhead Beg. bal Finished Goods Beg. bal. End. bal End. bal d. Cakculate operating profit (loss) for the first quarter of this year under actual and nomal costing systems Actual NormalStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started