---## Job-Order Costing System at Speedy Auto RepairsSpeedy Auto Repairs utilizes 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. ### Overhead ApplicationThe 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:| Item | Value ||-----------------------------------------------------------|---------|| Direct labor-hours required to support estimated output | 40,000 || Fixed overhead cost | $640,000|| Variable overhead cost per direct labor-hour | $1.00 |### Required Computations1. **Compute the predetermined overhead rate.**2. **Job Details for Mr. Wilkes:** - Direct materials: $707 - Direct labor cost: $230 - Direct labor-hours used: 9 Compute Mr. Wilkes' total job cost. 3. **Selling Price Calculation:** 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 below.---### Required 1: Predetermined Overhead RateCompute the predetermined overhead rate.(Please round your answer to 2 decimal places.)| Predetermined overhead rate | per DLH |---### Required 2: Mr. Wilkes' Total Job CostFill in the values for Mr. Wilkes’ job cost based on the given data.---### Required 3: Selling Price CalculationDetermine how much Speedy Auto Repairs would charge Mr. Wilkes based on the total job cost and markup percentage.---By understanding and applying these calculations, you can grasp the principles of job-order costing systems used by service-based businesses like Speedy Auto Repairs.---

Name: ---## Job-Order Costing System at Speedy Auto RepairsSpeedy Auto Repa
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: ---## Job-Order Costing System at Speedy Auto RepairsSpeedy Auto Repairs utilizes 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'