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Please help!! Brighton Services repairs locomotve engines, It employs 100 full-time workers at $20 per hour. Despite operating at capacity, last year's performance was a
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Brighton Services repairs locomotve engines, It employs 100 full-time workers at $20 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. Of the $1,040,000 manufacturing overhead, 30 percent was variable overhead and 70 percent was fixed. This yeat, 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. You are a consultant associated witr Lodi Consultants, which Brighton Services has asked for help. Lodis 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. 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 $850,000 and $550,000, respectively. All over-or underapplied overhead for the quarter is written off to Cost of Goods Sold. Fresent in T-sccounts the actual manufocturing cost flows for the three jobs in the first quarter of this vear \begin{tabular}{|l|l|l|l|} \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & ow ox \\ \hline & & & \\ \hline \end{tabular} Step by Step Solution
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