Street Runner 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 $1,178,200 Shop direct labor 860,000 Shop and repair equipment depreciation 73,600 Shop supervisor salaries 204,700 Shop property taxes 37,200 Shop supplies 28,500 Advertising expense 23,600 Administrative office salaries 101,300 Administrative office depreciation expense 13,000 Total costs and expenses $2,520,100 The average shop direct labor rate is $20 per hour. Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?