Speedy Auto Repairs uses job$-$order costing. Its 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 $22,000$

Fixed overhead cost $ $253,000$

Variable overhead cost per direct labor$-$hour $ $ $1\mathrm{.}00$

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 pertains to

his job:

Compute Mr$.$ Wilkes' total job cost.

If Speedy establishes selling prices using a markup percentage of $40\%$ of its total job cost, then how much would it have charged

Mr$.$ Wilkes?

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