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In this tutorial, Matt explains how automotive repair bills are calculated, addressing common misconceptions about mechanics overcharging. He notes that the majority of misunderstandings stem from a lack of clarity about billing processes, which rely on a "flat rate manual"—historically a physical book, now available online. Mechanics determine the cost of repairs by referring to this manual and multiplying the estimated labor time by the shop's hourly rate, which varies nationally from $75 to $140. He illustrates this with an example involving a job expected to take one hour, highlighting that if unexpected issues arise, this can affect the actual time and cost of repairs.