Homework SourseHi I have a question I dont understand this problem I know I
Hi I have a question I don\'t understand this problem
I know I\'m doing the right work. This is for accounting
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:
The average shop direct labor rate is $30 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round to the nearest cent.
$ per direct labor hour
| Engine parts | $875,000 | |
| Shop direct labor | 660,000 | |
| Shop and repair equipment depreciation | 44,500 | |
| Shop supervisor salaries | 138,000 | |
| Shop property taxes | 27,500 | |
| Shop supplies | 10,000 | |
| Advertising expense | 22,100 | |
| Administrative office salaries | 73,500 | |
| Administrative office depreciation expense | 8,600 | |
| Total costs and expenses | $1,859,200 |
Solution
Answer
= 660000 / 30 = 22000 direct labor hours worked.
