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.

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 $$1,090,000$ and $$690,000,$ 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$.$ 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.

Present in T$-$accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year.