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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 36,200 Shop Supervisor salaries 100,700 Shop property taxes 18,300 Shop supplies 14,000 Advertising expense 24,700 Administrative office salaries 106,000 Administrative om ce depreciation expense 13,600 Total costs and expenses $2,446,500 The average shop direct labor rate is $25 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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