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Predetermined Factory Overhead Rate Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and
Predetermined Factory Overhead Rate 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 $1,438,500 Shop direct labor 1,050,000 Shop and repair equipment depreciation 58,900 Shop supervisor salaries 163,600 Shop property taxs Shop supplies Advertising expense Administrative office salaries 123,700 Administrative office depreciation expense 15,800 Total costs and expenses $2,931,800 1 The average shop direct labor rate is $21 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round your answer to the nearest cent. $ 6.08 X per direct labor hour
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