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Predetermined Factory Overhead Rate Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for
Predetermined Factory Overhead Rate Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows Engine parts Shop direct labor $843,900 616,000 Shop and repair equipment depreciation 59,300 Shop supervisor salaries 164,900 Shop property taxes 29,900 Shop supplies 23,100 Advertising expense 16,900 Administrative office salaries 72,600 Administrative office depreciation expense 9,300 Total costs and expenses $1,835,900 The average shop direct labor rate is $14.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. 5X per direct labor hour Feedback Check My Work The predetermined shop overhead rate is determined by dividing the estimated shop overhead by direct labor hours.
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