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Willies Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming
Willies 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 | $931,600 | |
Shop direct labor | 680,000 | |
Shop and repair equipment depreciation | 50,900 | |
Shop supervisor salaries | 141,600 | |
Shop property tax | 25,700 | |
Shop supplies | 19,800 | |
Advertising expense | 18,600 | |
Administrative office salaries | 80,100 | |
Administrative office depreciation expense | 10,200 | |
Total costs and expenses | $1,958,500 |
The average shop direct labor rate is $20 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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