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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 $856,300
Shop direct labor 625,000
Shop and repair equipment depreciation 39,600
Shop supervisor salaries 110,100
Shop property tax 20,000
Shop supplies 15,300
Advertising expense 17,100
Administrative office salaries 73,600
Administrative office depreciation expense 9,400
Total costs and expenses $1,766,400

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. $ per direct labor hour

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