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Question 3: Cheema Auto Garage uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct

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Question 3: Cheema Auto Garage uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labour consists of the mechanics' hourly wages. Cheema's overhead costs include various items such as the garage supervisor's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labour-hours. At the beginning of the year, it made the following estimates: During the year, Mr. Navjot brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available in regards to his job: Required: 1. Compute the Pre-determined Overhead Rate. 2. Compute Mr. Navjot's total job cost. 3. If Cheema establishes its selling prices using a markup percentage of 50% of its total job cost, then how much would it have charged Mr. Navjot

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