Question
Speedy Auto Repairs uses a job-order costing system. The companys direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists
Speedy Auto Repairs uses a job-order costing system. The companys direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics hourly wages. Speedys overhead costs include various items, such as the shop managers 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:
Required:
a). Compute the predetermined overhead rate.
b). 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:
Compute Mr. Wilkes total job cost.
c). If Speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged Mr. Wilkes?
Direct labor-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labor-hour 44,000 748,000e $ 1.00 Direct materials Direct labor cost Direct labor-hours used $ 633 $ 231 2 Complete the question by entering your answers in the tabs given below. Required Required 2Required 3 Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH Required 2 Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute Mr. Wilkes' total job cost. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied Total cost assigned to Mr. Wilkes Required 1 Required 3 Complete the question by entering your answers in the tabs given below. Required 1 Required 2Required 3 If Speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged Mr. Wilkes? (Round your intermediate calculations to 2 decimal places.) ount charged to Mr.Wikes Required 2
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