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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 | $1,342,600 | |
Shop direct labor | 980,000 | |
Shop and repair equipment depreciation | 66,100 | |
Shop supervisor salaries | 183,700 | |
Shop property taxes | 33,300 | |
Shop supplies | 25,600 | |
Advertising expense | 26,900 | |
Administrative office salaries | 115,500 | |
Administrative office depreciation expense | 14,800 | |
Total costs and expenses | $2,788,500 |
The average shop direct labor rate is $20.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $fill in the blank 1 per direct labor hour
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