Predetermined Factory Overhead Rate

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

Shop direct labor

Shop and repair equipment depreciation

Shop supervisor salaries

Shop property taxes

Shop supplies

Advertising expense

Administrative office salaries

Administrative office depreciation expense

Total costs and expenses

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.

$$810,000$

$770,000$

$64,000$

$212,000$

$35,000$

$18,000$

$44,000$

$73,400$

$12,000$

$$2,038,000$