Business, 18.04.2020 00:45 johnwatson12

Predetermined Factory Overhead Rate
Novus 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 $1,257,500
Shop direct labor 550,000
Shop and repair equipment depreciation 91,000
Shop supervisor salaries 250,000
Shop property taxs 40,000
Shop supplies 15,000
Advertising expense 75,000
Administrative office salaries 175,000
Administrative office depreciation expense 12,500
Total costs and expenses $2,466,000

The average shop direct labor rate is $25 per hour. Determine the predetermined shop overhead rate per direct labor hour.

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Predetermined Factory Overhead Rate
Novus Engine Shop uses a job order cost system to determin...

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