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Business, 14.12.2020 06:30 sheldonwaid7958

Obj. 2 EX 16-10 Predetermined factory overhead rate
Exotic 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
$ 380,000
1,872,000
62,500
240,000
36,940
10,000
28,000
150,000
8,000
$2,787,440
The average shop direct labor rate is $37.50 per hour.
Determine the predetermined shop overhead rate per direct labor hour.

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Obj. 2 EX 16-10 Predetermined factory overhead rate
Exotic Engine Shop uses a job order cost...
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