Turbo Shop uses job order costing to determine the cost of performing engine repair work....
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Accounting
Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
| Line Item Description | Amount |
|---|---|
| Engine parts | $400,000 |
| Shop direct labor | 1,992,000 |
| Shop and repair equipment depreciation | 64,220 |
| Shop supervisor salaries | 210,000 |
| Shop property taxes | 57,390 |
| Shop supplies | 14,500 |
| Advertising expense | 32,000 |
| Administrative office salaries | 230,000 |
| Administrative office depreciation expense | 12,000 |
| Total costs and expenses | $3,012,110 |
The average shop direct labor rate is $40.00 per hour.
Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.
$ ______ per direct labor hour
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