Final answer:
The predetermined shop overhead rate per direct labor hour for Turbo Shop is found to be $47.21, calculated by dividing the accumulated overhead costs by the estimated labor hours.
Step-by-step explanation:
The predetermined overhead rate is calculated by dividing the total estimated overhead costs by the total estimated labor hours. For Turbo Shop, the overhead costs include shop direct labor, shop and repair equipment depreciation, shop supervisor salaries, shop property taxes, shop supplies, and administrative office depreciation expense, which sum up to $1,992,000 + $64,220 + $210,000 + $57,390 + $14,500 + $12,000 = $2,350,110. The total direct labor hours can be found by dividing the direct labor cost by the hourly rate, which is $1,992,000 / $40/hour = 49,800 hours. Therefore, the predetermined overhead rate is $2,350,110 / 49,800 hours = $47.21 per labor hour (rounded to the nearest whole cent).