Monty Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Monty estimated that the total overhead costs would be $69,900 and that the total labour hours would be 2,330. At the end of the year, Monty obtained the actual overhead costs from the ledger and found that the shop had incurred $63,868 and had worked 2,281 labour hours.

Exercise 5.24 Monty Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Monty estimated that the total overhead costs would be $69,900 and that the total labour hours would be 2,330. At the end of the year, Monty obtained the actual overhead costs from the ledger and found that the shop had incurred $63,868 and had worked 2,281 labour hours. Compute the predetermined (budgeted) overhead rate. Overhead Rate $ SHOW LIST OF ACCOUNTS Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied? Applied Overhead Amount $ SHOW LIST OF ACCOUNTS Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry Required" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS A customer brings her car to be fixed. She wants an estimate before she decides to have her car fixed. Monty estimates that the parts would cost $260, labour costs $44/hour for 2.50 hours. What is the cost of this job? Total Cost $ SHOW LIST OF ACCOUNTS To provide a quote to a customer, Monty adds a 44% mark up on the full costs. What is the quote for the job in (D)? (Round answer to O decimal places, e.g. 5,275.) Quote SHOW LIST OF ACCOUNTS