Predetermined Factory Overhead RateExotic 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$887,800Shop direct labor648,000Shop and repair equipment depreciation42,200Shop supervisor salaries117,300Shop property taxes21,300Shop supplies16,300Advertising expense17,800Administrative office salaries76,400Administrative office depreciation expense9,800 Total costs and expenses$1,836,900The average shop direct labor rate is $24.00 per hour.Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$fill in the blank 1 per direct labor hour

Calculation of total direct labor hours Direct labor cost $6,48,000 Cost per direct labor…

Answered: Predetermined Factory Overhead Rate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$887,800
Shop direct labor	648,000
Shop and repair equipment depreciation	42,200
Shop supervisor salaries	117,300
Shop property taxes	21,300
Shop supplies	16,300
Advertising expense	17,800
Administrative office salaries	76,400
Administrative office depreciation expense	9,800
	Total costs and expenses	$1,836,900

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.
$fill in the blank 1 per direct labor hour

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