Question

Amoruso 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 .................. $ 980,000
Shop direct labor ................ 750,000
Shop and repair equipment depreciation ....... 53,500
Shop supervisor salaries ............. 140,000
Shop property taxes .............. 26,300
Shop supplies .................. 20,200
Advertising expense ............... 19,900
Administrative office salaries ............. 84,000
Administrative office depreciation expense .... 11,200
Total costs and expenses ...................... $ 2,085,100
The average shop direct labor rate is $ 25 per hour.
Determine the predetermined shop overhead rate per direct labor hour.



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  • CreatedJune 27, 2014
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