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6. Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for
6. 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 | $1,015,200 | |
Shop direct labor | 741,000 | |
Shop and repair equipment depreciation | 50,900 | |
Shop supervisor salaries | 141,600 | |
Shop property taxes | 25,700 | |
Shop supplies | 19,700 | |
Advertising expense | 20,300 | |
Administrative office salaries | 87,300 | |
Administrative office depreciation expense | 11,200 | |
Total costs and expenses | $2,112,900 |
The average shop direct labor rate is $19 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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