Hi I have a question I don\'t understand this problem I know I\'m doing the righ

Question

Hi I have a question I don't understand this problem

I know I'm doing the right work. This is for accounting

Predetermined Factory Overhead Rate

Spring Street 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:

The average shop direct labor rate is $30 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round to the nearest cent.
$ per direct labor hour

Engine parts $875,000 Shop direct labor 660,000 Shop and repair equipment depreciation 44,500 Shop supervisor salaries 138,000 Shop property taxes 27,500 Shop supplies 10,000 Advertising expense 22,100 Administrative office salaries 73,500 Administrative office depreciation expense 8,600 Total costs and expenses $1,859,200

Explanation / Answer

Answer

= 660000 / 30 = 22000 direct labor hours worked.

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