Reference no: EM13790607
Amoruso 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 980,000
Shop direct labor 750,000
Shop and repair equip depreciation 53,500
Shop supervisor salaries 140,000
Shop property taxes 26,300
Shop supplies 20,200
Advertising expense 19,900
Administrative office salaries 84,000
Administrative office depreciation expense 11,200
Total costs and expenses 2,085,100
The average shop direct labor rate is $25 per hour.
Determine the predetermined shop overhead rate per direct hour.
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