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 Direct Direct Job 101 102 103 Total manufacturing overhead Total marketing and administrative costs Materials $137,600 Labor $520,000 97,000 94,400 312,500 198,000 271,600 116,000 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.