Brighton Services repairs locomotive engines. It employs 100 full-time workers at $20 per hour. Despite operating at capacity, last years 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 $1,036,400 4,200,000 1,050,000 Of the $1,050,000 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 Labor Job 101 102 103 Total manufacturing overhead Total $137,300 $495,000 94,000 312,400 94,100 197,800 271,300 113,000 and administrative costs 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 S 30,000 27,600 Fixed 101 102 103 $104,100 88,300 16,600 $ 209,000 4,700 $ 62,300 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 $852,000 and $552,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold