Dave's Mower Repairs uses a job order cost system to determine the cost of performing...
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Accounting
Dave's Mower Repairs uses a job order cost system to determine the cost of performing lawnmower repair work. Estimated costs and expense for the coming period are as follows: Lawnmower parts $810.000 Shop and repair equipment depreciation 60,000 Advertising expense 32.000 Shop supervisor salaries 120,000 Administrative office depreciation expense 9.000 Shop property taxes 24,000 Administrative office salaries 86,000 Shop supplies 16.000 Shop direct labor 450,000 The budgeted average direct shop direct labor rate is $18 per hour. The actual direct hours worked during the year were 22,000 hours. Required: 1) Prepare a detailed calculation of the predetermined shop overhead rate per direct labor hour. 2) Compute the total amount of overhead to be allocated during the year
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