Foster Appliance Repair has developed a reputation over many years for providing high$-$quality, reliable repair services at a fair price. The company has grown from a two$-$person operation $($nun by Victor Foster and his wife Sally Jones$)$ to a much larger company employing Foster and Jones as well as four skilled repair personnel and two service technicians. Jones manages the front ofice and prepares all accounting$-$related records for the company. Recently, Jones has noticed a decline in profits generated by the repair business. Foster has also noticed some decline in the number of repairs completed over the past few menths. He believes this reduction may be due to increased competition from a new repair shop in the area. Since pricing is based to a large degree on the cost of repairs, Foster asked Jones to spend some time analyzing how repair costs were charged for jobs, to better understand the problem. He was quick to renind Jones that he was committed to keeping all personnel on fixed salaries since he believes this allows him to keep good employees and encourages loyally to the compary.

Jones collected the following information about the costing system:

Direct materials used in repairs are charged directly to the job.

The four repair personnel are paid a fixed salary of $$50,000$ per year, and the two technicians are paid a ficed salary of $$38,000$ per year. Jones estimates that each of the six repair personnel works $1750$ hours per year on customer jobs

Other budgeted indirect support costs for the year $($e$.$g$.,$ rent, insurance utilies, supplies, repair van maintenance, repair van depreciation$)$ total $$178,450,$ including Foster's and Jones's salaries.

The price of each job is calculated on a cost$-$plus basis. Customers pay the toial cost to complete the job plus a markup of $10\%$

The total cost for each job is calculated as follows total direct material cost plus the "shop rate" $$ number of repair hours to complete the job. The shop rate is applied to all types of repair jobs. The shop rate is calculated as the sum of the repair personnel salaries plus budgeted indirect support costs for the year divided by the estimated total hours to be worked on customer jobs for the year.

Jones noted that about $65\%$ of total indirect costs related to complex repairs over the last couple of years, while the other $35\%$ of total indirect costs were related to simpler repairs. Even so$,$ about half of the total time worked on customer jobs by repair personnel and technicians was related to complex repairs. While the other half was related to simple repairs. While Jones believed this was important information, she realized it was not taken jnto. apcount when calculating the overall shop rate for the year.

Required:

Calculate the shop rate for the year based on the above in iormation gathered by Jones.

Use the information gathered by Jones about the proportion of pomplex and simple repairs each year to calculate different shop rates that could be applied to comples and smple rephit ryonk.

Consider Job $1246$ completed by Foster Appliance Repar Last month. Whe job cost sheet indicates $$115$ cost of direct materials plus $6$ hours of labour time $x$ the shop ratte. two shop rates calculated in $(2)$ above to astinnate the prop that wowh have been charged for Job $1246$ under this newsystem. resuiting in lover profitability the proposial?

please help with the $5$ queztions!!