2(a) Speedy Auto Repairs uses a Job-Order costing system. The Company's direct materials consist of replacements parts installed in customer vehicles at $59 per part, and its direct labour is expressed at one and half hour per each material part used. Speedy's overhead costs include various items such as the shop manager's salary, depreciation of equipment, utilities, insurance and magazine subscription and refreshments for the waiting room. The company applies all its overheads to jobs based on direct labour hours. At the beginning of the year, it made the following estimates During the year, Mr. Wike brought in his vehicle to replace his breaks, spark plugs, and tires. The following information was available with respect to his job: Required: a) Compute the predetermined overhead rate ( 2 marks) b) Compute Mr. Wike's total job cost ( 3 marks) c) If Speedy establishes its selling prices using a markup of 40% of its total job cost, then how much would he have charged Mr. Wike? (1 mark) 2 (B) How would you treat Underapplied and Overapplied overhead in the Joborder costing system? (2 marks)