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 $698,700 Shop direct labor 510,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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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 $698,700
Shop direct labor 510,000
Shop and repair equipment depreciation 51,400
Shop supervisor salaries 142,800
Shop property taxes 25,900
Shop supplies 19,900
Advertising expense 14,000
Administrative office salaries 60,100
Administrative office depreciation expense 7,700
     Total costs and expenses $1,530,500

The average shop direct labor rate is $17.00 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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