Predetermined Factory Overhead Rate Street 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 $652,100 Shop direct labor 476,000 Shop and repair equipment depreciation 43,700 Shop supervisor salaries 121,600 Shop property taxes 22,100 Shop supplies 17,000 Advertising expense 13,000 Administrative office salaries 56,100 Administrative office depreciation expense 200,ר Total costs and expenses $1,408,800 The average shop direct labor rate is $17 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 Street 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 $652,100 Shop direct labor 476,000 Shop and repair equipment depreciation 43,700 Shop supervisor salaries 121,600 Shop property taxes 22,100 Shop supplies 17,000 Advertising expense 13,000 Administrative office salaries 56,100 Administrative office depreciation expense 200,ר Total costs and expenses $1,408,800 The average shop direct labor rate is $17 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Predetermined Factory Overhead Rate
Street 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
$652,100
Shop direct labor
476,000
Shop and repair equipment depreciation
43,700
Shop supervisor salaries
121,600
Shop property taxes
22,100
Shop supplies
17,000
Advertising expense
13,000
Administrative office salaries
56,100
Administrative office depreciation expense
7,200
Total costs and expenses
$1,408,800
The average shop direct labor rate is $17 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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