Predetermined Factory Overhead Rate 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 $657,600 Shop direct labor 480,000 Shop and repair equipment depreciation 41,100 Shop supervisor salaries 114,200 Shop property taxes 20,700 Shop supplies 16,000 Advertising expense 13,200 Administrative office salaries 56,600 Administrative office depreciation expense 7,200 Total costs and expenses $1,406,600 The average shop direct labor rate is $15.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. X per direct labor hour
Predetermined Factory Overhead Rate 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 $657,600 Shop direct labor 480,000 Shop and repair equipment depreciation 41,100 Shop supervisor salaries 114,200 Shop property taxes 20,700 Shop supplies 16,000 Advertising expense 13,200 Administrative office salaries 56,600 Administrative office depreciation expense 7,200 Total costs and expenses $1,406,600 The average shop direct labor rate is $15.00 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. X per direct labor hour
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 10E: Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair...
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