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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. per direct labor hour
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