$4$

Landen Corporation uses job$-$order costing. At the beginning of the year, it made the following estimates:

Required:

References

Assume Landen has historically used a plantwide predetermined overhead rate with direct labor$-$hours as the allocation base. Under this approach:

a$.$ Compute the plantwide predetermined overhead rate.

b$.$ Compute the total manufacturing cost of Job $550.$

c$.$ If Landen uses a markup percentage of $200\%$ of its total manufacturing cost, what selling price would it establish for Job $550?$

Assume Landen's controller believes that machine$-$hours is a better allocation base than direct labor$-$hours. Under this approach:

a$.$ Compute the plantwide predetermined overhead rate.

b$.$ Compute the total manufacturing cost of Job $550.$

c$.$ If Landen uses a markup percentage of $200\%$ of its total manufacturing cost, what selling price would it establish for Job $550?$

Note: Round your intermediate calculations to $2$ decimal places. Round your Predetermined Overhead Rate answers to $2$ decimal places and all other answers to the nearest whole dollar.

$\backslash$table$[[1.$ Direct labor$-$hours:,,$],[1$a$.$ Predetermined overhead rate,,per DLH$],[1$b$.$ Total manufacturing cost of Job $550,,],[1$r$.$ Sallinn nrica,,$]]$

$5$

Speedy Auto Repairs uses job$-$order costing. Its 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, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room.

$2$ points

The company applies all of its overhead costs to jobs based on direct labor$-$hours. At the beginning of the year, it made the following estimates:

Direct labor$-$hours required to support estimated output

Fixed overhead cost

Variable overhead cost per direct labor$-$hour

$46,000$

$$805,000$

$$1\mathrm{.}00$

Required:

Compute the predetermined overhead rate.

During the year, Mr$.$ Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information pertains to his job:

$\backslash$table$[[$Direct materials,$],[$Direct labor cost,$197],[$Direct labor$-$hours used,$4]]$

Compute Mr$.$ Wilkes' total job cost.

$3.$ If Speedy establishes selling prices using a markup percentage of $40\%$ of its total job cost, then how much would it have charged Mr$.$ Wilkes?

Complete the question by entering your answers in the tabs given below.

Compute the predetermined overhead rate.

Note: Round your answer to $2$ decimal places.

Predetermined overhead rate

per DLH