Question
Street Runner Engine Shop uses ajob order cost systemto determine the cost of performing engine repair work. Estimated costs and expenses for the coming period
Street Runner Engine Shop uses ajob order cost systemto determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts$1,150,800 Shop direct labor 840,000 Shop and repair equipment depreciation 59,200 Shop supervisor salaries 164,500 Shop property taxes 29,900 Shop supplies 22,900 Advertising expense 23,000 Administrative office salaries 99,000 Administrative office depreciation expense 12,700Total costs and expenses$2,402,000
The average shop direct labor rate is $24 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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