The engine shop uses a job order cost system to determine

Reference no: EM13614842

The Engine Shop uses a job order cost system to determine thecost of performing engine repair work. Estimated costs andexpenses for the coming period are as follows:

Engineparts 650,750

Shop directlabor 520,625

Shop and repair equipmentdepreciation 12,800

Shop supervisorsalaries 93,125

Shop propertytax 22,300

Shopsupplies 12,650

Advertisingexpense 18,100

Administrative officesalaries 61,600

Administrative office depreciationexpense 8,050

Total costs andexpenses 1,400,000

The average shop direct labor rate is $17 perhour.

Determine the pre determined shop overhead rate perdirect labor hour.

Reference no: EM13614842

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