Tim buys a high-powered tool from binford tools to use on the construction of his own garage. binford tools provides a full warranty on the tool for the first six months. to pay for the tool, tim signs a negotiable promissory note which contains the ftc consumer credit notice. binford properly negotiates the note to first finance. within three weeks, the tool stops working and binford refuses to repair or replace it. in the meantime, first finance demands payment from tim. under the federal trade commission rules, this consumer credit situation means first finance

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