Brighton Services repairs locomotive engines. It employs 100
full-time workers at $17 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: $1,054,400
Direct Labor: $4,760,000
Manufacturing Overhead: $1,120,000
Of the $1,120,000 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,...