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ok Help Homework customer vehicles, and its direct labor consists of the mechanics hourly wages. S as the shop manager’s salary. waiting room depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the l of its overhead costs to jobs based on direct labor-hours At the beginning of the year, it made the following Direct labor hours required to support estimated output Fixed overhead cost 36, 000 Variable overhead cost per direct labor-hour Ss40, 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 s 685 $153 Direct labor cost Direct labor-hours used Compute Mr. Wilkes total job cost 3 ir Speedy establishes its selling prices using a markup percentage of 30% 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.
Expert Answer
| Direct Labor hours | 36,000 | |
| Fixed overhead cost | 540,000 | |
| Variable overhead rate | 1 | per direct labor |
| Fixed overhead recovery rate | =Fixed cost/Direct labor cost | |
| Fixed overhead recovery rate | =540000/36000 | |
| Fixed overhead recovery rate | 15.00 | per direct labor |
| Job cost | ||
| Description | Amount | |
| Direct Material | 685 | |
| Direct labor | 153 | |
| Overhead recovery rate | ||
| Variable-7*1 | 7 | |
| Fixed-7*15 | 105 | |
| Total Job cost | 950 | |
| Selling price | ||
| Description | Amount | |
| Total Job cost | 950 | |
| Mark up @ 30% of 950 | 285 | |
| Selling price | 1,235 | |
