es Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
es 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 20,000 $ 350,000 Variable overhead cost per direct labor-hour $ 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 $ 590 Direct labor cost Direct labor-hours used $ 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. Required 1 Required 2 Required 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? < Prev 2 of 3 Next>> es 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 20,000 $ 350,000 Variable overhead cost per direct labor-hour $ 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 $ 590 Direct labor cost Direct labor-hours used $ 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. Required 1 Required 2 Required 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? < Prev 2 of 3 Next>>
Expert Answer:
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these accounting questions
-
Suppose a Mario Real Estate Management Company is considering purchasing an office building which is going to be used for rental income. The cost of the building is 2 million USD paid in cash...
-
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...
-
In Exercises 912, use the given conditions to write an equation for each line in point-slope form and general form Passing through (4, -7) and perpendicular to the line whose equation is x - 2y - 3 =...
-
An investor buys a bond for $10,000. The bond pays $200 interest every 6 months. After 18 months, the investor sells the bond for $9,500. Describe the types of income and/or loss the investor had.
-
An IPv6 packet consists of the base header and a TCP segment. The length of data is 320 bytes. Show the packet and enter a value for each field.
-
Most Americans address their family members using the Inuit kinship system. Is this system adequate for a society with frequent divorce, remarriage, and both formal and informal adoption? Are any new...
-
Harold Manufacturing produces denim clothing. This year, it produced 5,000 denim jackets at a manufacturing cost of $45 each. These jackets were damaged in the warehouse during storage. Management...
-
You own a portfolio that is 20 percent invested in Stock X, 35percent in Stock Y, and 45 percent in Stock Z. The expected returnson these three stocks are 8 percent, 11 percent, and 13...
-
File Tools View PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Branch A Screens 2-3 of 6 R1 FO/0 Fa0 A1 S2/0...
-
Compare your recalculated ending inventory to that given to Sharptop Bank and to Southern Appalachian Insurance. Is either estimated ending inventory materially different from that reported on the...
-
How does Greg Larsens business solvency impact his wife Tonya Larsen?
-
Who is a payee on a check? A. The person(s) who signs the front of the check. B. The person(s) who signs the back of the check. C. The person(s) named on the front of the check who is to receive the...
-
If a lawyer for the suspect in a fraud examination states that he/she represents the suspect and no one will be allowed to talk with their client, can you interview the suspect or his/her spouse? A....
-
In the case scenario, it states that when two or more bank reconciliations (e.g., prior and current reconciliation) result in large unaccounted for differences, the differences might be what? A. Cash...
-
Referring to table below, calculate the market value of firm L (without a corporate income tax) if the equity amount in its capital structure decreases to $10,000 and the debt amount increases to...
-
Quadrilateral EFGH is a kite. Find mG. E H <105 G 50 F
-
John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospitals lab. Charges for lab tests are consistently higher at Valley View than at other...
-
Wallis Company manufactures only one product and uses a standard cost system. The company uses a predetermined plant wide overhead rate that relies on direct labor-hours as the allocation base. All...
-
Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures....
-
Describe which characteristics of HR metrics and workforce analytics are likely to result in greater return on investment and organizational impact.
-
Why are information security and privacy important considerations in the design, development, and maintenance of an HRIS?
-
List and discuss the major information security and privacy threats to organizations.
Study smarter with the SolutionInn App