Problem $2-20($Static$)$ Job$-$Order Costing for a Service Company $[$LO$2-1,$ LO$2-2,$ LO$2-3]$

Speedy Auto Repairs uses job$-$order costing. Its 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$20,000$Fixed overhead cost$ $350,000$Variable overhead cost per direct labor$-$hour$ $1\mathrm{.}00$

Required:

Compute the predetermined overhead rate.

During the year, Mr$.$ Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information pertains to his job:

Direct materials$ $590$Direct labor cost$ $109$Direct labor$-$hours used$6$

Compute Mr$.$ Wilkes$$ total job cost.

If Speedy establishes selling prices using a markup percentage of $40\%$ of its total job cost, then how much would it have charged Mr$.$ Wilkes?