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Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming
Novus 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 $1,545,400 Shop direct labor 1,128,000 Shop and repair equipment depreciation 61,400 Shop supervisor salaries 170,600 Shop property taxs 31,000 Shop supplies 23,700 Advertising expense 30,900 Administrative office salaries 132,900 Administrative office depreciation expense 17,000 Total costs and expenses $3,140,900 The average shop direct labor rate is $24 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round your answer to the nearest cent. per direct labor hour
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