Check Speedy Auto Repairs uses a joborder costing system The

Check Speedy Auto Repairs uses a job-order costing system. The company\'s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics\' hourly wages. Speedy\'s overhead costs include various items, as the shop manager\'s salary, depreciation of equipment, utilities, insurance, and magazine s waiting room such subscriptions and refreshments for the 02-29.49 The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of estimates: the year, it made the following labor-hours required to support estimated outpat Fixed overhead cost Variable overhead cost per direet labor-hour 30,000 s 405,000o $.00 Required 1. Compute the predetermined overhead rate. 2. During the year. Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job: Direct naterials Direct 1abor cost Direct labar-hours used s 619 113 Mr. Wilkes total job cost 3. If Speedy establishes its seling prices using a markup percentage of 40% of its total job cost, then how much would it have changed Mr. Wilkes? Complete the question by entering your answers in the tabs given below. Required 1Required 2 Required 3 1 of 4 EE Next > MacBook Air

Solution

1.) Predetermined overhead rate fixed overhead cost (405,000/30,000)= 13.5 Variable overhead cost per direct labor hour 1 Predetermined overhead rate 14.5 per DLH 2) Total job cost Direct materials 619 Direct labor cost 113 overhead applied (4*14.5) 58 total job cost 790 answer 3) selling price 1,106 790*140% 1106