The AutoDoctor Body Shop uses a job order cost system to determine the cost of performing automotive

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The AutoDoctor Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs and expenses for the coming period are as follows:

Auto parts .................... $ 675,500

Shop direct labor ................ 490,000

Shop and repair equipment depreciation ....... 16,900

Shop supervisor salaries .............. 95,200

Shop property tax ................ 19,200

Shop supplies .................... 12,200

Advertising expense ................. 17,300

Administrative office salaries ............... 63,400

Administrative office depreciation expense .......... 10,300

Total costs and expenses ........................................ $1,400,000

The average shop direct labor rate is $14 per hour.

Determine the predetermined shop overhead rate per direct labor hour.


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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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