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:

The average shop direct labor rate is $$24\mathrm{.}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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The predetermined shop overhead rate is determined by dividing the estimated shop overhead by direct labor hours.