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The Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming
The 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 650,750 Shop direct labor 520,625 Shop and repair equipment depreciation 12,800 Shop supervisor salaries 93,125 Shop property taxes 22,300 Shop Supplies 12,650 Advertising expense 18,100 Administrative office salaries 61,600 Administrative office depreciation sales 8,050 Total cost and expenses 1,400,000 The average shop direct labor rate is 17.00 per hour. Determine the predetermined shop overhead rate per direct labour hour
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