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 $
Shop direct labor
Shop and repair equipment depreciation
Shop supervisor salaries
Shop property taxes
Shop supplies
Advertising expense
Administrative office salaries
Administrative office depreciation expense
Total costs and expenses $
The average shop direct labor rate is $ per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
fill in the blank of $
per direct labor hour
