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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
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 Shop direct labor $1,356,300 990,000 Shop and repair equipment depreciation 70,300 Shop supervisor salaries 195,500 Shop property taxes 35,500 Shop supplies 27,200 Advertising expense 27,100 Administrative office salaries 116,600 Administrative office depreciation expense 14,900 Total costs and expenses $2,833,400 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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