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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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