1a

Johansen Company uses a predetermined overhead rate based on direct Labour hours to apply manufacturing overhead to jobs. The company has provided the following estimated costs for the next year:

Direct materials	6,000
Direct Labour	20,000
Rent on factory building	15,000
Sales salaries	25,000
Depreciation on factory equipment	8,000
Indirect Labour	12,000
Production supervisor's salary	15,000

Johansen estimates that 20,000 direct Labour hours will be worked during the year. The predetermined overhead rate per hour will be?