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Predetermined Factory Overhead Rate Road Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs

Predetermined Factory Overhead Rate

Road Runner 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 $810,000
Shop direct labor 770,000
Shop and repair equipment depreciation 64,000
Shop supervisor salaries 212,000
Shop property taxes 35,000
Shop supplies 18,000
Advertising expense 44,000
Administrative office salaries 73,400
Administrative office depreciation expense 12,000
Total costs and expenses $2,038,000

The average shop direct labor rate is $22 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. $fill in the blank 1 per direct labor hour

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