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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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