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Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming
Exotic 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 | $715,100 | |
Shop direct labor | 522,000 | |
Shop and repair equipment depreciation | 36,000 | |
Shop supervisor salaries | 100,100 | |
Shop property taxes | 18,200 | |
Shop supplies | 13,900 | |
Advertising expense | 14,300 | |
Administrative office salaries | 61,500 | |
Administrative office depreciation expense | 7,900 | |
Total costs and expenses | $1,489,000 |
The average shop direct labor rate is $18.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
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