Road Runner Engine Shop uses ajob order cost systemto determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

Engine parts$753,500Shop direct labor550,000Shop and repair equipment depreciation34,800Shop supervisor salaries96,700Shop property taxes17,600Shop supplies13,400Advertising expense15,100Administrative office salaries64,800Administrative office depreciation expense8,300Total costs and expenses$1,554,200

The average shop direct labor rate is $22 per hour.