Alcide mining company purchased land on february 1, 2017, at a cost of $1,190,000. it estimated that a total of 60,000 tons of mineral was available for mining. after it has removed all the natural resources, the company will be required to restore the property to its previous state because of strict environmental protection laws. it estimates the fair value of this restoration obligation at $90,000. it believes it will be able to sell the property afterwards for $100,000. it incurred developmental costs of $200,000 before it was able to do any mining. in 2017, resources removed totaled 30,000 tons. the company sold 22,000 tons.

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