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 $1,844,480 4,640,000 1,168,eee Of the $1.150.000 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 twojobs and was beginning the third (Job 103). The costs incurred follow. Job 101 182 103 Total manufacturing overhead Total marketing and administrative costs Direct Materials $ 138, 180 102,wee 94,900 Direct Labor $498,00 312,980 195,000 272,180 119,690 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 Manufacturing Overhead Variable Fixed 101 $ 39,800 $184,900 182 28,4ee 89, 199 193 5,500 13,400 $ 64,780 $ 207,400 In the first quarter of this year, 30 percent of marketing and administrative cost was variable and 70 percent was fixed. You are told that Jobs 101 and 102 were sold for $864.000 and $568,000, 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. 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 0 Wages Payable 0 Beg. Bal. 0 0 Beg Bal. 101: DL 0 0 0 0 138,100 101: DM 102,000 102: DM 94,900 103: DM 0 335.000 498,000 101: DL 312,900 102: DL 195.000 103: DL 0 0 0 0 0 1,005,000 End. Bal End. Bal. Actual Actual Variable Manufacturing Overhead 64.700 30.800 101: Variable 0 28,400 102: Variable 0 5,500 103: Variable 0 0 Fixed Manufacturing Overhead 207,400 104,900 101: Fixed 0 89,100 102: Fixed 0 13,400 103: Fixed 0 0 End. Bal. End. Bal. Finished Goods Inventory Work-in-Process Inventory 0 0 Beg. Bal. Beg Bal 0 Total DM 335.000 771.800 Total 101 Finished Goods Total 101 Finished Goods 771.800 1,304,200 Cost of Goods Sold Total DL 1.005.900 532,400 Total 102 Finished Goods Total 102 Finished Goods 532.400 0 0 Total Variable MOH Total Fixed MOH 0 End. Bal. 64.700 207,400 0 308.800 0 End. Bal. Cost of Goods Sold 0 Beg. Bal. Finished Goods 1.304.200 0 0 0 End. Bal. 1,304 200 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 not round intermediate calculations and Round your final answers to nearest whole dollar amounts.) Materials Inventory Wages Payable Beg. Bal. Beg. Bal. 138,100 102,000 498,000 312,900 94,900 195,000 End. Bal. 335,000 End. Bal. 1,005,900 Variable Manufacturing Overhead 49,800 31.290 Fixed Manufacturing Overhead 74,700 46,935 19.500 29,250 End. Bal. 100590 End. Bal. 150885 Work-in-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal. Cost of Goods Sold End. Bal. End. Bal. Cost of Goods Sold Under-or Overapplied Overhead Beg. Bal. Beg. Bal. Finished Goods End. Bal. . End. Bal