Question
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 $650750
shop direct labor $520625
shop and repair depreciation $12800
shop supervisor salaries $ 93125
shop property tax $22300
Shop supplies $12650
advertising expense $18100
Administrative office salaries 61600
Administrative office depreciation expense 8050
total costs and expenses $1,400,000
The average shop direct labor rate is $17 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round all answers to nearest whole cent.
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