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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 $822,000 Shop direct labor 600,000 Shop and repair equipment depreciation 43,700 Shop supervisor salaries 121,400 Shop property taxes 22,000 16,900 Shop supplies Advertising expense 16,4001 Administrative office salaries 70,700 Administrative office depreciation expense 9,000 Total costs and expenses $1,722,100 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. per direct labor hour
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