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Bundy Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to Jobs using a predetermined overhead rate based

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Bundy Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to Jobs using a predetermined overhead rate 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 40,000 $640, eee 1.00 $ During the year, a customer brought in her car for repairs. The following information was available with respect to the car's repairs: Direct materials $ 707 Direct labor cost $ 230 Direct labor-hours used 9 if Bundy sets its selling prices by adding a markup percentage of 50% of its total job cost, then how much would Bundy have charged this customer for her car's repairs? Multiple Choice $2,295 $1.090 $937 $1,635

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