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Spring Street Engine Shop uses a job order cost svstem to determine the cost of performing engine repair work. Estimated costs and expenses for the
Spring Street Engine Shop uses a job order cost svstem to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $1,409,200 Shop direct labor 1,029,000 Shop and repair equipment depreciation 29,200 Shop supervisor salaries 221,600 Shop property tax 40,200 Shop supplies 30,900 Advertising expense 28,200 Administrative ofce salaries 121,200 Administrative ofce depreciation expense 15,500 Total costs and expenses $2:9?6r000 The average shop direct labor rate is $21 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest Iwhole cent. 15E 1'! per direct labor hour
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