EX 16-10 Predetermined factory overhead rate Turbo Shop uses Job order costing to determine the cost of performing engine repair work. Esti- mated costs and expenses for the coming period are as follows: Obj. 2 Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies actory overhead. Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses $400,000 1,992,000 64,220 210,000 57,390 14,500 32,000 230,000 12,000 $3,012,110 The average shop direct labor rate is $40.00 per hour. Determine the predetermined shop overhead rate per direct labor hour.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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EX 16-10 Predetermined factory overhead rate
Turbo Shop uses Job order costing to determine the cost of performing engine repair work. Esti-
mated costs and expenses for the coming period are as follows:
Obj. 2
Engine parts
Shop direct labor
Shop and repair equipment depreciation
Shop supervisor salaries
Shop property taxes
Shop supplies
actory overhead.
Advertising expense
Administrative office salaries
Administrative office depreciation expense
Total costs and expenses
$400,000
1,992,000
64,220
210,000
57,390
14,500
32,000
230,000
12,000
$3,012,110
The average shop direct labor rate is $40.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour.
Transcribed Image Text:EX 16-10 Predetermined factory overhead rate Turbo Shop uses Job order costing to determine the cost of performing engine repair work. Esti- mated costs and expenses for the coming period are as follows: Obj. 2 Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies actory overhead. Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses $400,000 1,992,000 64,220 210,000 57,390 14,500 32,000 230,000 12,000 $3,012,110 The average shop direct labor rate is $40.00 per hour. Determine the predetermined shop overhead rate per direct labor hour.
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