Question

help me please. this is hard I would be so thankful.

Problem 2-18 Job-Order Costing for a Service Company (LO2-1, LO2-2, LO2-3] 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 20,000 $ 350,000 $ 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 $ 590 $ 109 6 Compute Mr. Wilkes' total job cost. 3. If Speedy establishes its selling prices using a markup percentage of 40% 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.

Answer 1

Requirement 1 | Predetermined Overhead Rate Particulars $ Total Fixed Costs $ 350,000 Total Variable Costs $ 20,000 Total Overheads Cost $ 370,000 Direct Labor Hours 20,000 Pre-determined Overhead Rate $ 18.50 Per Direct Labor Hour $ Requirement 2] Total Job Cost Particulars Direct Materials $ Direct Labor $ Overheads Cost $ Total Cost $ 590 109 111_[$ 18.50 Per Hour * 6 Hours] 810 Requirement 3 | Selling Price Particulars Total Cost $ Add : Markup @ 40% $ Selling Price $ $ 810 324 [$ 810 * 40%] 1,134