Floyd's Auto Repair Shop uses a job order cost system to track the cost of each repair, Floyd's applies its garage or shop overhead at a rate of $20 per direct labor hour spent on each repair . Floyd's uses the following accounts to track the cost of all repairs: Raw Materials (parts and supplies) Repair Jobs in Process Cont of Repairs completed and sold Garage/Shop Overhead Costs Because an auto shop does not manufacture a product, the overhead cost would include all of the indirect costs that are incurred in the garage or shop that cannot be traced to a specific repair job. The following transactions occurred during the most recent month: (a) Purchased raw materials (parts and supplies) on account $22,600. (b) Used $16,600 in raw materials (parts and supplies). Of this $13,000 was for major parts that were traceable to individual repair jobs, and the remainder was for incidental supplies such as lubricants, rags, fuel, and so on. (c) Recorded a total of $7,400 in direct labor cost (for 370 hours) that are owed but not yet paid. (d) Applied overhead to repair jobs at a rate of $25.80 per direct labor hour (e) Recorded the following actual overhead costs: Rent on garage (prepaid in the prior month) Depreciation on repair equipment Carage supervisor's salary (owed but not yet paid) $13,500 2.200 3,900 in Completed repair jobs costing $52,000 and charged customers at cost plus an additional 34 percent. (Note: You can bypass the Finished Goods Inventory account, which is not appropriate in this context.)