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	$	1,039,400
Direct labor		3,840,000
Manufacturing overhead		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.

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

	Actual Manufacturing Overhead
	Variable		Fixed
101	$	30,300	$	104,400
102		27,900		88,600
103		5,000		15,400
	$	63,200	$	208,400

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 $880,000 and $558,000, 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.

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. End. Bal. End. Bal. Variable Manufacturing Overhead Fixed Manufacturing Overhead End. Bal. End. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal Beg. Bal. Cost of Goods Sold End. Bal. End. Bal Cost of Goods Sold Beg. Bal Finished Goods End. Bal. 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. (Round your answers to 2 decimal places.) Predetermined Overhead Rate (Per Direct Labor-Hour) Variable overhead rate Fixed overhead rate 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 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. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. (Round your final answers to nearest whole dollar amounts. Loss amounts should be indicated with a minus sign.). Actual Normal Operating profit (loss) 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. End. Bal. End. Bal. Variable Manufacturing Overhead Fixed Manufacturing Overhead End. Bal. End. Bal. Work-in-Process Inventory Finished Goods Inventory Beg. Bal Beg. Bal. Cost of Goods Sold End. Bal. End. Bal Cost of Goods Sold Beg. Bal Finished Goods End. Bal. 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. (Round your answers to 2 decimal places.) Predetermined Overhead Rate (Per Direct Labor-Hour) Variable overhead rate Fixed overhead rate 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 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. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. (Round your final answers to nearest whole dollar amounts. Loss amounts should be indicated with a minus sign.). Actual Normal Operating profit (loss)