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EX 19-9 Predetermined factory overhead rate Street Runner Engine Shop uses a job order cost system to determine the cost of per engine repair work.
EX 19-9 Predetermined factory overhead rate Street Runner Engine Shop uses a job order cost system to determine the cost of per engine repair work. Estimated costs and expenses for the coming period are as OBJ. 2 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 $ 740,000 500,000 40,000 133,000 22,000 10,000 20,000 71,400 6,000 $1,542,400 Total costs and expenses The average shop direct labor rate is $20 per hour. Determine the predetermined shop overhead rate per direct labor hour. OBJ. 2
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