Hyde Restorations rebuilds factory facilities. It employs $130$ full$-$time workers at $$25$ per hour. Despite operating at capacity, last year$$s performance was a great disappointment to the managers. In total, nine jobs were accepted and completed, incurring the following total costs:

Direct materials $ $1,221,200$

Direct labor $4,555,000$

Manufacturing overhead $1,166,080$

Of the $$1,166,080$ manufacturing overhead, $25$ percent was variable overhead and $75$ percent was fixed.

This year, Hyde 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, Hyde Restorations completed two jobs and was beginning the third $($Job $13).$ The costs incurred follow:

Direct Materials Direct Labor

Job $11$ $ $179,460$ $ $618,000$

Job $12122,000396,000$

Job $13123,300252,500$

Total manufacturing overhead $326,540$

Total marketing and administrative costs $157,900$

You are a consultant associated with Conway & Company, which has been hired by Hyde to analyze the profitability issue. The managing partner on the engagement has reviewed the accounts at Hyde and suggests you start by classifying the overhead into fixed and variable components for each of the jobs. With the help of the Hyde supervisors on each of the jobs, you arrive at the following split.

Actual Manufacturing Overhead

Variable Fixed

Job $11$ $$36,980$ $$125,900$

Job $12$ $$34,100$ $$106,940$

Job $13$ $$6,620$ $$21,500$

$$77,700$ $$254,340$

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 $11$ and $12$ were sold for $$1,112,000$ and $$712,000,$ 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$.$ Check my workCalculate operating profit $($loss$)$ for the first quarter of this year under actual and normal costing systems.