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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 $1,287,800
Shop direct labor 940,000
Shop and repair equipment depreciation 52,300
Shop supervisor salaries 145,400
Shop property taxs 26,400
Shop supplies 20,300
Advertising expense 25,800
Administrative office salaries 110,800
Administrative office depreciation expense 14,200
Total costs and expenses $2,623,000

The average shop direct labor rate is $20 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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