Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

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 30,000 405,000 $1.00 Variable overhead cost per direct labor-hour Required: 1. Compute the predetermined overhead rate 2. 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 $619 $ 113 Compute Mr. Wilkes' 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

No Nonsense Employee Retention Audit

Authors: Jeff Kortes

1st Edition

0988307014, 978-0988307018

More Books

Students also viewed these Accounting questions

Question

____________ Must receive dividends before common stockholders.

Answered: 1 week ago

Question

Explain all drawbacks of application procedure.

Answered: 1 week ago