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Predetermined Factory Overhead Rate Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs
Predetermined Factory Overhead Rate Spring Street 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 $920,600 Shop direct labor 672,000 Shop and repair equipment depreciation 38,300 Shop supervisor salaries 106,600 Shop property tax 19,400 Shop supplies 14,900 Advertising expense 18,400 Administrative office salaries 79,200 Administrative office depreciation expense 10,100 Total costs and expenses $1,879,500 The average shop direct labor rate is $21 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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