5.24 Job Costing, Over- aud Underapplied Overhead, Journal Entries, Service Quote Bibby Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Bibby estimated That the total overhead costs would be $32,000 and that the total labour hours would be 2,400. At the end of the year, Bibby obtained the actual overhead costs from the ledger and found that the shop had incurred $65,800 and had worked 2,350 labour hours. Required: A. Compute the predetermined (budgeted) overhead rate. B. Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied? C. Prepare the journal entry to close the overhead account. Assume that the underapplied and overapph'ed overhead was not material. D. A customer brings her car to be fixed. She wants an estimate before she decides to have her car xed. Bibby estimates that the parts would cost $250, labour costs $40fhour for 2.5 hours. What is the cost of this job? E. To provide a quote to a customer, Bibby adds a 40% mark up on The full costs. What is the quote for the job in (D)