Turbo Shop uses job order costing to determine the cost of performing engine repair work....
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Accounting
Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Line Item Description
Amount
Engine parts
$400,000
Shop direct labor
1,992,000
Shop and repair equipment depreciation
64,220
Shop supervisor salaries
210,000
Shop property taxes
57,390
Shop supplies
14,500
Advertising expense
32,000
Administrative office salaries
230,000
Administrative office depreciation expense
12,000
Total costs and expenses
$3,012,110
The average shop direct labor rate is $40.00 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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