Business, 30.07.2020 02:01 elise47

Bundy Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead costs to jobs using a predetermined overhead rate based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output 46,000
Fixed overhead cost $805,000
Variable overhead cost per direct labor-hour $1.00

During the year, a customer brought in her car for repairs. The following information was available with respect to the car's repairs:

Direct materials $719
Direct labor cost $177
Direct labor—hours used 7

If Bundy sets its selling prices by adding a markup percentage of 30% of its total job cost, then how much would Bundy have charged this customer for her car's repairs?

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Bundy Car Mechanic Inc. uses a job-order costing system. The company applies all of its overhead cos...

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