Spring Street Engine Shop uses a job order cost system to de

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:

The average shop direct labor rate is $22 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
$ per direct labor hour

Engine parts	$1,205,600
Shop direct labor	880,000
Shop and repair equipment depreciation	62,500
Shop supervisor salaries	173,700
Shop property tax	31,500
Shop supplies	24,300
Advertising expense	24,100
Administrative office salaries	103,700
Administrative office depreciation expense	13,300
	Total costs and expenses	$2,518,700

Calculate shop overhead rate :

so $37.44 per direct labour hour

Engine parts	1205600
Shop and repair equipment depreciation	62500
Shop supervisor salaries	173700
Shop property tax	31500
Shop supplies	24300
Total shop overhead	1497600
Direct labour hour (880000/22)	40000
Predetermined shop overhead rate	37.44

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 perio

Spring Street Engine Shop uses a job order cost system to de

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