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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

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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 $1,301,500 Shop direct labor 950,000 Shop and repair equipment depreciation 54,600 Shop supervisor salaries 151,700 Shop property taxes 27,500 Shop supplies 21,200 Advertising expense 26,000 Administrative office salaries 111,900 Administrative office depreciation expense 14,300 Total costs and expenses $2,658,700 The average shop direct labor rate is $19.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. 5.042 X per direct labor hour $ Feedback Check My Work Factory overhead is applied based on direct labor hours

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