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Road Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the
Road Runner 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 5838,400 512,000 Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop Supplies Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses 47,000 130,700 23,700 18,200 16,800 72,100 9,200 $1,768,100 The average shop direct labor rate is $17 per hour Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. 8.2 X per direct labor hour
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