Swifty Auto Repairs is a service firm that uses a job costing system. Direct labor consists of mechanics' pay. Direct materials consist of auto parts. Manufacturing overhead costs include items such as the shop manager's salary, utilities, insurance and other sundry indirect costs. As the shop is highly labor-intensive, Swifty Auto Repairs has decided to apply manufacturing overhead on the basis of direct labor hours. The following estimates for the coming year were made at the start of the year: Budgeted Manufacturing Overhead Budgeted Direct Labor Hours $122,000 2,500 hours