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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
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 $1,356,300 Shop direct labor 990,000 Shop and repair equipment depreciation 80,900 Shop supervisor salaries 224,900 Shop property taxes 40,800 Shop supplies 31,400 Advertising expense 27,100 Administrative office salaries 116,600 Administrative office depreciation expense 14,900 Total costs and expenses $2,882,900 The average shop direct labor rate is $22.00 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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