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II. The Auto Care Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs
II. The Auto Care Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs and expenses for the coming period are as follows: Auto parts $ 520,000 Advertising expense 15,200 Shop direct labor 384,000 Shop and repair equipment depreciation 14,800 Administrative office salaries 54,800 Shop supervisor salaries 82,400 Shop property tax 23,200 Administrative office depreciation 10,000 Shop supplies 12,400 Total costs and expenses $1,116,800 The average shop direct labor rate is $12 per hour. Required: Determine the predetermined shop overhead rate per direct labor hour
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