Novus 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 $767,200 Shop direct labor 560,000 Shop and repair equipment depreciation 68,500 Shop supervisor salaries 190,400 A Shop property taxs 34,600 Shop supplies 26,500 Advertising expense 15,300 Administrative office salaries 66,000 Administrative office depreciation expense ৪,৭00 Total costs and expenses $1,736,900 The average shop direct labor rate is $14 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round your answer to the nearest cent. per direct labor hour

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Predetermined Factory Overhead Rate
Novus 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
$767,200
Shop direct labor
560,000
Shop and repair equipment depreciation
68,500
Shop supervisor salaries
190,400 -
Shop property taxs
34,600
Shop supplies
26,500
Advertising expense
15,300
. Administrative office salaries
66,000
Administrative office depreciation expense
8,400
Total costs and expenses
$1,736,900
The average shop direct labor rate is $14 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round your answer to the nearest cent.
%24
per direct labor hour
Transcribed Image Text:Predetermined Factory Overhead Rate Novus 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 $767,200 Shop direct labor 560,000 Shop and repair equipment depreciation 68,500 Shop supervisor salaries 190,400 - Shop property taxs 34,600 Shop supplies 26,500 Advertising expense 15,300 . Administrative office salaries 66,000 Administrative office depreciation expense 8,400 Total costs and expenses $1,736,900 The average shop direct labor rate is $14 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round your answer to the nearest cent. %24 per direct labor hour
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