urgent

08: Chapter 19 Pimp My Ride Mechanics customises cars for their owners. The business consists of the owner (Jeff Jeffries), and an employee (Richie Rich). The employee is paid Euro 60 an hour and Jeff, the owner, pays himself the same amount. During the forthcoming month, it is expected that each will work a total of 160 hours. The costs (excluding wages) for the forthcoming month are expected to be: Cost Euro Rent and rates 6,000 Heat and light 1,000 Insurance 750 Depreciation of equipment 4.250 Telephone 500 Water charges 500 A customer has asked Jeff to provide a quote for customising a particular car for an upcoming road show. Jeff believes that the job would take 60 hours of his time and 40 hours of the employee's time. The cost of the parts is expected to be Euro 1750. Jeff charges customers on the basis of full cost plus 20 percent. Required: a) Assuming the Profit Loading is 20% and the Value- Added Tax (VAT) rate is 19%, suggest a price that Jeff should quote the customer. Round all your figures into whole numbers (i.e. no decimal places). b) State the three reasons for using a predetermined overhead rate (POHR)