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Business, 22.09.2021 01:30 kikirogers2255

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 $1,094,600
Shop direct labor 799,000
Shop and repair equipment depreciation 47,300
Shop supervisor salaries 131,400
Shop property taxes 23,900
Shop supplies 18,300
Advertising expense 21,900
Administrative office salaries 94,100
Administrative office depreciation expense 12,000
Total costs and expenses $2,242,500

The average shop direct labor rate is $17.00 per hour.

Required:
Determine the predetermined shop overhead rate per direct labor hour.

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