Question: predetermined factory overhead rate spring street engine shop uses a...
Predetermined Factory Overhead Rate
Spring Street 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:
|Shop direct labor||612,000|
|Shop and repair equipment depreciation||58,600|
|Shop supervisor salaries||162,800|
|Shop property tax||29,500|
|Administrative office salaries||72,100|
|Administrative office depreciation expense||9,200|
|Total costs and expenses||$1,822,100|
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