General Accounting Question Skyline Auto Repair uses a job order cost system to determine the cost ofperforming engine repair work. Estimated costs and expenses for the comingperiod are as follows:•Engine Parts$920,000•Shop Direct Labor = $700,000Shop & Repair Equipment Depreciation = $50,000••Shop Supervisor Salaries$145,000•Shop Property Taxes = $30,000•Shop Supplies = $12,500•Advertising Expense = $25,000•Administrative Office Salaries$80,000••Administrative Office Depreciation Expense = $10,000Total Costs and Expenses = $1,972,500The average shop direct labor rate is $32 per hour.Determine the predetermined shop overhead rate per direct labor hour (roundedto the nearest cent).

Step 1: Define Predetermined Shop Overhead RateThe Predetermined Shop Overhead Rate is a rate used…

Answered: Skyline Auto Repair uses a job order…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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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: The average shop direct labor rate is 37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour.
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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 $ 740,000Shop direct labor 500,000Shop and repair equipment depreciation 40,000Shop supervisor salaries 133,000Shop property taxes 22,000Shop supplies 10,000Advertising expense 20,000Administrative office salaries 71,400Administrative office depreciation expense 6,000Total costs and expenses $1,542,400The average shop direct labor rate is $20 per hour.Determine the predetermined shop overhead rate per direct labor…
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Determine the predetermined shop overhead rate per direct labor hour?
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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 $989,100 Shop direct labor 722,000 Shop and repair equipment depreciation 39,800 Shop supervisor salaries 110,800 Shop property taxes 20,100 Shop supplies 15,500 Advertising expense 19,800 Administrative office salaries 85,100 Administrative office depreciation expense 10,900 Total costs and expenses $2,013,100 The average shop direct labor rate is $19.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$fill in the blank 1 per direct labor hour
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 $901,500 Shop direct labor 658,000 Shop and repair equipment depreciation 70,400 Shop supervisor salaries 195,800 Shop property taxes 35,500 Shop supplies 27,300 Advertising expense 18,000 Administrative office salaries 77,500 Administrative office depreciation expense 9,900 Total Cost and Expenses $1,993,900 The average shop direct labor rate is $14 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$fill in the blank 1 per direct labor hour
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 $1,067,200 Shop direct labor 779,000 Shop and repair equipment depreciation 72,800 Shop supervisor salaries 202,500 Shop property taxes 36,800 Shop supplies 28,200 Advertising expense 21,300 Administrative office salaries 91,800 Administrative office depreciation expense 11,700 Total costs and expenses $2,311,300 The average shop direct labor rate is $19 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.$fill in the blank 1 per direct labor hour
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