Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help asap. Brighton Services repairs locomotive engines. It employs 100 full-time workers at $18 per hour. Despite operating at capacity, last year's performance was

please help asap.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $18 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 $1,043,400 5,040,000 1,260,000 of the $1,250,000 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 two jobs and was beginning the third (Job 103). The costs incurred follow. Job 101 102 Direct Direct Materials Labor $ 138,000 $496,000 181,000 312,800 94,800 198,700 272,000 118,000 103 Total manufacturing overhead Total marketing 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. 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 101 102 103 Actual Manufacturing Overhead Variable Fixed $ 30,700 $ 104,880 28,300 89,000 5,400 13,800 $ 64,400 $207,600 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 $862,000 and $566,000, respectively. All over- or underapplied overhead for the quarter is written off to Cost of Goods Sold Required: 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. Complete this question by entering your answers in the tabs below. Required Required D Required A Required B the inhs in the first quarter of this year. Check my work Required A Required B Required Required D 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 Ba End Bal End Bal Fixed Manufacturing Overhead Variable Manufacturing Overhead End Bal End. Bal Finished Goods Inventory Work-In-Process Inventory Bog. Bal Cost of Goods Sold Beg Bal End. Bal End. Bal Cost of Goods Sold Beg. Bal Finished Goods End. Ball Next 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 (6) d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems. Complete this question by entering your answers in the tabs below. Required A Required Required Required 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 (Par Direct Labor-Hour) Variable overhead rate Faced overhead rate

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

Communication; Reflective thinking) pg98

Answered: 1 week ago