Question
In: Accounting
Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts...
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 30,000 Fixed overhead cost $ 405,000 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 $ 619 Direct labor cost $ 113 Direct labor-hours used 4 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?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts...
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...
peedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts...
peedy 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...
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients.
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the clock monitoring of
patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the clock monitoring of
patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the clock monitoring of
patients are treated...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials...
McCullough Hospital uses a job-order costing system to assign
costs to its patients. Its direct materials include a variety of
items such as pharmaceutical drugs, heart valves, artificial hips,
and pacemakers. Its direct labor costs (e.g., surgeons,
anesthesiologists, radiologists, and nurses) associated with
specific surgical procedures and tests are traced to individual
patients. All other costs, such as depreciation of medical
equipment, insurance, utilities, incidental medical supplies, and
the labor costs associated with around-the-clock monitoring of
patients are treated as...
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