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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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