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:

Line Item Description Amount

Engine parts $$989,100$

Shop direct labor $722,000$

Shop and repair equipment depreciation $42,300$

Shop supervisor salaries $117,600$

Shop property taxes $21,300$

Shop supplies $16,400$

Advertising expense $19,800$

Administrative office salaries $85,100$

Administrative office depreciation expense $10,900$

Total costs and expenses $$2,024,500$

The average shop direct labor rate is $$19\mathrm{.}00$ per hour.