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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
The 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 ………………………….. $ 650,750
Shop direct labor ……………………….. 520,625
Shop and repair equipment depreciation … 12,800
Shop supervisor salaries …………………. 93,125
Shop property tax ………………………… 22,300
Shop supplies …………………………….. 12,650
Advertising expense ……………………… 18,100
Administrative office salaries …………….. 61,600
Administrative office depreciation expense … 8,050
Total costs and expenses ……………… $1,400,000
The average shop direct labor rate is $17 per hour.
Determine the predetermined shop overhead rate per direct labor hour.
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