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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 $1,233,000 Shop direct labor 900,000 Shop and repair equipment depreciation 69,300 Shop supervisor salaries 192,800 Shop property taxes 35,000 Shop supplies 26,900 Advertising expense 24,700 Administrative office salaries 106,000 Administrative office depreciation expense Total costs and expenses $2,601,300 The average shop direct labor rate is $20 per hour Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. 7 X per direct labor hour 13,600 Fondack Check My Work Factory overhead is applied based on direct labor hours
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