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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 | $1,205,600 | |
Shop direct labor | 880,000 | |
Shop and repair equipment depreciation | 62,500 | |
Shop supervisor salaries | 173,700 | |
Shop property tax | 31,500 | |
Shop supplies | 24,300 | |
Advertising expense | 24,100 | |
Administrative office salaries | 103,700 | |
Administrative office depreciation expense | 13,300 | |
Total costs and expenses | $2,518,700 |
The average shop direct labor rate is $22 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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