PROBLEM 5-16 Applying Overhead in a Service Company [LO3, LO4,LO] ] consist of replaceSpeedy Auto Repairs uses a job-order costing system. The company's direct materials consict hourly wages. ment parts installed in customer vehicles, and its direct labour consists of the malary, depreciation of equipSpeedy's overhead costs include various items such as the shop manager's salary, depreciating room. The company applies all of its overhead costs to jobs based on direct labotrof the ye During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job: Required: 1. Compute the predetermined overhead rate. 2. Compute Mr. Wilkes's total job cost. 3. If Speedy establishes its selling prices using a markup percentage of 40% of its total job cost, then how much would it have charged Mr. Wilkes