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Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the
Spring Street 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 | $993,300 | |
Shop direct labor | 725,000 | |
Shop and repair equipment depreciation | 49,000 | |
Shop supervisor salaries | 136,300 | |
Shop property tax | 24,700 | |
Shop supplies | 19,100 | |
Advertising expense | 19,900 | |
Administrative office salaries | 85,400 | |
Administrative office depreciation expense | 10,900 | |
Total costs and expenses | $2,063,600 |
The average shop direct labor rate is $25 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
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