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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 | $843,900 | |
Shop direct labor | 616,000 | |
Shop and repair equipment depreciation | 42,500 | |
Shop supervisor salaries | 118,300 | |
Shop property taxes | 21,500 | |
Shop supplies | 16,500 | |
Advertising expense | 16,900 | |
Administrative office salaries | 72,600 | |
Administrative office depreciation expense | 9,300 | |
Total costs and expenses | $1,757,500 |
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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