Predetermined Factory Overhead Rate Street Runner Engine Shop uses a job order cost system to...
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Predetermined Factory Overhead Rate Street Runner 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 $964,500 Shop direct labor 704,000 Shop and repair equipment depreciation 42,500 Shop supervisor salaries 118,000 Shop property taxes Shop supplies 21,400 16,500 Advertising expense 19,300 Administrative office salaries 82,900 Administrative office depreciation expense 10,600 Total costs and expenses $1,979,700 The average shop direct labor rate is $22 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $ per direct labor hour
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