Predetermined Factory Overhead Rate Exotic 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 Shop direct labor Shop and repair equipment depreciation. Shop supervisor salaries Shop property taxes Shop supplies $989,100 722,000 39,800 110,800 20,100 15,500 19,800 85,100 10,900 $2,013,100 Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses The average shop direct labor rate is $19.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole 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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Exotic 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 $989,100
Shop direct labor 722,000
Shop and repair equipment depreciation 39,800
Shop supervisor salaries 110,800
Shop property taxes 20,100
Shop supplies 15,500
Advertising expense 19,800
Administrative office salaries 85,100
Administrative office depreciation expense 10,900
     Total costs and expenses $2,013,100

The average shop direct labor rate is $19.00 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
$fill in the blank 1 per direct labor hour

Predetermined Factory Overhead Rate
Exotic 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
Shop direct labor
Shop and repair equipment depreciation
Shop supervisor salaries
Shop property taxes
Shop supplies
$989,100
722,000
39,800
110,800
20,100
15,500
19,800
85,100
10,900
$2,013,100
Advertising expense
Administrative office salaries
Administrative office depreciation expense
Total costs and expenses
The average shop direct labor rate is $19.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
per direct labor hour
Transcribed Image Text:Predetermined Factory Overhead Rate Exotic 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 Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies $989,100 722,000 39,800 110,800 20,100 15,500 19,800 85,100 10,900 $2,013,100 Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses The average shop direct labor rate is $19.00 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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