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Brighton Services repairs locomotive engines. It employs 100 time workers at $16 per hour. Despite operating at capacity, last year's performance was a great disappointment
Brighton Services repairs locomotive engines. It employs 100 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 materiala $1,042,400 Direet Labor 4,320,000 Manufacturing 1,080,000 overhead of the SLOBO,000 manufacturing overhead, 35 percent was variable overhead and 65 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 lobs and was beginning the third ob 103). The costs incurred follow. Direct Direct Job Materials Labor 101 $ 137,900 $497,000 102 100,000 313,000 103 94,700 198,400 Total manufacturing overhead 271,900 Total marketing and 117.000 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. 101 Actual Manufacturing Overhead Variable Fixed $30,600 $104,700 28,200 88.900 5,300 14,200 $64,100 $207,800 102 103 in the first quarter of this year, 30 percent of marketing and administrative cost was vertable and 70 percent was fixed. You are told that Jobs 101 and 102 were sold for $860,000 and $564,000 respectively. All over- or underappiled 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 d. Calculate operating profit oss 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. 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 Fixed overhead rate 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.) Show less Materials Inventory Wages Payable Beg. Bal. Beg. Bal. End. Bal. Variable Manufacturing Overhead Fixed Manufacturing Overhead End. Bal End. Bal. Work-In-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal. Goods Sold End. Bal. Cost of Goods Sold Beg Bal. Finished Goods Under-or Overapplied Overhead Beg. Bal. 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 pront (loss) Brighton Services repairs locomotive engines. It employs 100 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 materiala $1,042,400 Direet Labor 4,320,000 Manufacturing 1,080,000 overhead of the SLOBO,000 manufacturing overhead, 35 percent was variable overhead and 65 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 lobs and was beginning the third ob 103). The costs incurred follow. Direct Direct Job Materials Labor 101 $ 137,900 $497,000 102 100,000 313,000 103 94,700 198,400 Total manufacturing overhead 271,900 Total marketing and 117.000 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. 101 Actual Manufacturing Overhead Variable Fixed $30,600 $104,700 28,200 88.900 5,300 14,200 $64,100 $207,800 102 103 in the first quarter of this year, 30 percent of marketing and administrative cost was vertable and 70 percent was fixed. You are told that Jobs 101 and 102 were sold for $860,000 and $564,000 respectively. All over- or underappiled 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 d. Calculate operating profit oss 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. 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 Fixed overhead rate 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.) Show less Materials Inventory Wages Payable Beg. Bal. Beg. Bal. End. Bal. Variable Manufacturing Overhead Fixed Manufacturing Overhead End. Bal End. Bal. Work-In-Process Inventory Finished Goods Inventory Beg. Bal. Beg. Bal. Goods Sold End. Bal. Cost of Goods Sold Beg Bal. Finished Goods Under-or Overapplied Overhead Beg. Bal. 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 pront (loss)
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