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 $953,500 696,000 31,700 88,000 16,000 12,200 Advertising expense 19,100 Administrative office salaries 82,000 Administrative office depreciation expense 10,500 Total costs and expenses $1,909,000 The average shop direct labor rate is $24.00 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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$953,500
696,000
31,700
88,000
16,000
12,200
Advertising expense
19,100
Administrative office salaries
82,000
Administrative office depreciation expense
10,500
Total costs and expenses
$1,909,000
The average shop direct labor rate is $24.00 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 $953,500 696,000 31,700 88,000 16,000 12,200 Advertising expense 19,100 Administrative office salaries 82,000 Administrative office depreciation expense 10,500 Total costs and expenses $1,909,000 The average shop direct labor rate is $24.00 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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