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

variable overhead cost per direct labor-hour

Direct materials

Direct labor cost

Direct labor-hours used

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:

$622

$ 229

6

$

$

16,000

168,000

1.00

Compute Mr. Wilkes' total job cost.

3. If Speedy establishes its selling prices using a markup percentage of 60% of its total job cost, then how much would It have charged

Mr. Wilkes?

Required 1 Required 2 Required 3

Complete the question by entering your answers in the tabs given below.

Compute the predetermined overhead rate. (Round your answer to 2 decimal places.)

Predetermined overhead rate

per DLH