**Predetermined Factory Overhead Rate**Road Runner 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: $843,900- Shop direct labor: $616,000- Shop and repair equipment depreciation: $65,900- Shop supervisor salaries: $183,300- Shop property taxes: $32,300- Shop supplies: $25,500- Advertising expense: $16,900- Administrative office salaries: $72,600- Administrative office depreciation expense: $9,300Total costs and expenses: $1,865,700The average shop direct labor rate is $14 per hour.Determine the predetermined shop overhead rate per direct labor hour. **Round the answer to the nearest whole cent.**$_____ per direct labor hour

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Description: **Predetermined Factory Overhead Rate**Road Runner 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: $843,900- Shop dire

Shop Equipment Dep 65,900 Sup. Salary 183,300 Property taxes 33,300 Supplies 25,500 Total Overhead 308,000 Total labor cost 616,000 Divided by labor rate / 14 No. of labor hours 44,000 Predetermined Overhead rate = Total Overhead / Total Direct labor hours = $308,000 / 44,000 = $7 per direct labor hour

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Predetermined Factory Overhead Rate Road Runner 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 $843,900 Shop direct labor 616,000 Shop and repair equipment depreciation 65,900 Shop supervisor salaries 183,300 Shop property taxes 33,300 Shop supplies 25,500 Advertising expense 16,900 Administrative office salaries 72,600 Administrative office depreciation expense 9,300 Total costs and expenses $1,866,700 The average shop direct labor rate is $14 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour

Predetermined Factory Overhead Rate Road Runner 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 $843,900 Shop direct labor 616,000 Shop and repair equipment depreciation 65,900 Shop supervisor salaries 183,300 Shop property taxes 33,300 Shop supplies 25,500 Advertising expense 16,900 Administrative office salaries 72,600 Administrative office depreciation expense 9,300 Total costs and expenses $1,866,700 The average shop direct labor rate is $14 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

Section: Chapter Questions

Problem 1Q

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