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Business, 05.05.2020 05:14 aniyagreen777

Street 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 $1,178,200 Shop direct labor 860,000 Shop and repair equipment depreciation 73,600 Shop supervisor salaries 204,700 Shop property taxes 37,200 Shop supplies 28,500 Advertising expense 23,600 Administrative office salaries 101,300 Administrative office depreciation expense 13,000 Total costs and expenses $2,520,100 The average shop direct labor rate is $20 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.

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