(Solution) - The AutoDoctor Body Shop uses a job order cost system -(2025 Original AI-Free Solution)

Paper Details

The AutoDoctor Body Shop uses a job order cost system to determine the cost of performing automotive body and repair work. Estimated costs and expenses for the coming period are as follows:
Auto parts .................... $ 675,500
Shop direct labor ................ 490,000
Shop and repair equipment depreciation ....... 16,900
Shop supervisor salaries .............. 95,200
Shop property tax ................ 19,200
Shop supplies .................... 12,200
Advertising expense ................. 17,300
Administrative office salaries ............... 63,400
Administrative office depreciation expense .......... 10,300
Total costs and expenses ........................................ $1,400,000
The average shop direct labor rate is $14 per hour.
Determine the predetermined shop overhead rate per direct labor hour.