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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 $596,000 435,000 Shop and repair equipment depreciation 36,000 Shop supervisor salaries 100,100 Shop property taxes 18,200 Shop supplies 13,900 Advertising expense 11,900 Administrative office salaries 51,300 Administrative office depreciation expense 6,600 Total costs and expenses $1,269,000 The average shop direct labor rate is $15.00 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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