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Brighton Services repairs locomotive engines. It employs 100 full-time workers at $20 per hour. Since beginning operations last year, it has Direct Materials $1,035,400 priced

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Brighton Services repairs locomotive engines. It employs 100 full-time workers at $20 per hour. Since beginning operations last year, it has Direct Materials $1,035,400 priced the various jobs by marking up direct labor hours and direct materials cost 20%. Despite operating at capacity, however, last year's Direct Labor $4,000,000 performance was a great disappointment to the managers. In total, 10 jobs were accepted and completed, incurring the total costs at right: Mfg OH $1,040,000 Of the $1,040,000 manufacturing overhead, 30% was variable overhead and 70% 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 Job DM DL beginning the third. 101 $137.200 $490,000 The costs incurred are shown 102 93.000 312.400 at right: 103 94,000 197.600 Mfg OH 271,200 S&A 112,000 You are a consultant associated with Lodi consultants, which Brighton Services has asked for help. Lodi's senior partner has examined Brighton Service's accounts and has decided to divide the actual factor overhead by job into fixed and variable portions as shown in the table

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