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Question: predetermined factory overhead rate spring street engine shop uses a...

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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:

Engine parts $838,400
Shop direct labor 612,000
Shop and repair equipment depreciation 58,600
Shop supervisor salaries 162,800
Shop property tax 29,500
Shop supplies 22,700
Advertising expense 16,800
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

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