Road Runner Engine Shop uses a job order cost system to determine the cost of...
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Accounting
Road Runner 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 | $810,000 | |
| Shop direct labor | 770,000 | |
| Shop and repair equipment depreciation | 64,000 | |
| Shop supervisor salaries | 212,000 | |
| Shop property taxes | 35,000 | |
| Shop supplies | 18,000 | |
| Advertising expense | 44,000 | |
| Administrative office salaries | 73,400 | |
| Administrative office depreciation expense | 12,000 | |
| Total costs and expenses | $2,038,000 | |
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. $fill in the blank 1 per direct labor hour
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