Predetermined Factory Overhead Rate Exotic Engine Shop uses a job order cost system to determine...
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Accounting
Predetermined Factory Overhead Rate
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts
$1,150,800
Shop direct labor
840,000
Shop and repair equipment depreciation
67,400
Shop supervisor salaries
187,400
Shop property taxes
34,000
Shop supplies
26,200
Advertising expense
23,000
Administrative office salaries
99,000
Administrative office depreciation expense
12,700
Total costs and expenses
$2,440,500
The average shop direct labor rate is $20.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $fill in the blank 1 per direct labor hour
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