Wahl’s Discount Stores stocks toy race cars. The normal purchase price is $5.00 per unit for these cars, but the store faces the following quantity discount schedule: For orders between 1000 to 1999, the price drops to $4.80/unit; for orders of 2000 or more, the price drops further to $4.75/unit. The ordering cost is $49 per order, annual demand is 5000 cars, and the inventory carrying cost is 20% of the material cost. What order quantity will minimize total cost?

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