Question: How is direct labor hour calculated? Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated

How is direct labor hour calculated?

How is direct labor hour calculated? Exotic Engine Shop uses a job

Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the Earning period are as follows: Engine parts $789,100 Shop direct labor 576,000 Shop and repair equipment depreciation 42,400 Shop supervisor salaries 117,500 Shop property taxes 21,400 Shop supplies 16,400 Advertising expense 15,800 Administrative office salaries 67,900 Administrative office depreciation expense 8,700 Total cosls and expenses $1,655,500 The average shop direct labor rate is $16.00 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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