The master budget of Tenenbaum Ltd. shows that the planned activity level for next year is expected to be 30,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720,000
Machine supplies180,000
Indirect materials210,000
Depreciation on factory building150,000
Total manufacturing overhead$1,260,000

A flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs of:

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