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Predetermined Factory Overhead Rate Willies Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and
Predetermined Factory Overhead Rate Willies 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 $863, 100 Shop direct labor 630,000 Shop and repair equipment depreciation 48, 200 Shop supervisor salaries 133, 900 Shop property tax 24, 300 Shop supplies 18, 600 Advertising expense 12, 300 Administrative office salaries 74, 200 Administrative office deprecation expense 9.500 Total costs and expenses $1, 619, 100 The average shop direct labor rate is $14 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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