In january 2014, domingo, inc., acquired 20 percent of the outstanding common stock of martes, inc., for $700,000. this investment gave domingo the ability to exercise significant influence over martes. martes's assets on that date were recorded at $3,900,000 with liabilities of $900,000. any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. in 2014, martes reported net income of $170,000. in 2015, martes reported net income of $210,000. dividends of $70,000 were declared in each of these two years. what is the equity method balance of domingo's investment in martes, inc., at december 31, 2015? $728,000.$756,000.$748,000.$776,000 .

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 20,000 fixed overhead cost $ 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 $ 109 direct labor-hours used 6