Speedy Auto Repairs uses a job$-$order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager'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 labor$-$hours. At the beginning of the year, it made the following estimates:

Direct labor$-$hours required to support estimated output

Fixed overhead cost

Variable overhead cost per direct labor$-$hour

$12,000$

$$114,000$

$$1\mathrm{.}00$

Required:

Compute the predetermined overhead rate.

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:

Direct materials

Direct labor cost

Direct labor$-$hours used

$$626$

$$292$

Compute Mr$.$ Wilkes' total job cost.

$3.$ If Speedy establishes its selling prices using a markup percentage of $40\%$ of its tota$/$ job cost, then how much would it have charged Mr$.$ Wilkes?

Complete the question by entering your answers in the tabs given below.

Required $3$

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?

Note: Round your intermediate calculations to $2$ decimal places.

Amount charged to Mr$.$ Wilkes