Predetermined Factory Overhead Rate

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		$675,400
Shop direct labor		493,000
Shop and repair equipment depreciation		51,500
Shop supervisor salaries		143,200
Shop property taxes		26,000
Shop supplies		20,000
Advertising expense		13,500
Administrative office salaries		58,100
Administrative office depreciation expense		7,400
	Total costs and expenses	$1,488,100

The average shop direct labor rate is $17.00 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $ per direct labor hour

Entry for Factory Labor Costs A summary of the time tickets is as follows: Job No. Amount 100 $2,080 101 1,730 104 3,160 108 3,580 Indirect 11,090 111 2,180 115 1,430 117 9,700 Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank. Work in Process Factory Overhead Wages Payable Feedback Check My Work Increase the Work in Process for the direct labor, increase Factory Overhead for the indirect labor, and increase Wages Payable for the total labor