Obj4 E10-15 Predetermined factory overhead rate Novus Engine Shop uses a job order cost system...
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Obj4 E10-15 Predetermined factory overhead rate Novus Engine Shop uses a job order cost system to determine the cost of performing en gine 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 55,000 Shop supervisor salaries 250,000 Shop property taxes 40,000 Shop supplies 15.000 Advertising expense 25,000 Administrative office salaries 175,000 Administrative office depreciation expense 12,500 Total costs and expenses $2.460.000 The average shop direct labor rate is $25 per hour. Determine the predetermined shop overhead rate per direct labor hour
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