Homework Help Question & Answers

Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

Speedy Auto Repairs uses a job-order costing system. The companys direct materials consist of replacement parts installed in

Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predeter

Compute Mr. Wilkes total job cost. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor

If Speedy establishes its selling prices using a markup percentage of 50% of its total job cost, then how much would it have

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 14,000 $140,000 $ 1.00 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 $650 $295 5 Compute Mr. Wilkes' total job cost. 3. If Speedy establishes its selling prices using a markup percentage of 50% of its total job cost, then how much would it have charged Mr. Wilkes?
Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per DLH
Compute Mr. Wilkes' total job cost. (Round your intermediate calculations to 2 decimal places.) Direct materials Direct labor Overhead applied Total cost assigned to Mr. Wilkes
If Speedy establishes its selling prices using a markup percentage of 50% of its total job cost, then how much would it have charged Mr. Wilkes? (Round your intermediate calculations to 2 decimal places.) Amount charged to Mr. Wilkes
0 0
Add a comment
Answer #1

1. Predetermined overhead rate = Estimated manufacturing overhead cost/Estimated total units in the allocation base.

Predetermined overhead rate = $154000 / 14,000 hours (140000+($1x14000hrs))
Predetermined overhead rate (including variable overheads)= $11.00 per direct labor hour.

2. Calculation of total job cost-

Direct Material $650
Direct labour $295
Overhead applied (5DLH x $11) $55
Total cost assigned to Mr. Wilkes $1000

Markup percentage would be 50% of total job

So amount of markup=$1000x50/100 = $500

Amount charged to Mr. Wilkes=$1000+$500=$1,500

Please mention your doubt in comment box.

Thanks & all the best.......

Add a comment
Know the answer?
Add Answer to:
Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coin

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

  • Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts...

    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...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.