E2-5 (Algo) Calculating Predetermined Overhead Rate and Applied Overhead [LO 2-3) Wheeler's Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow. Bike parts Factory machinery depreciation Factory supervisor salaries Factory direct labor Factory supplies Factory property tax Advertising cost Administrative salaries Administrative-related depreciation Total expected costs $354,800 56,000 143,500 238,329 46,480 34,250 23,500 47,500 26,200 $970,479 Required: 1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.61 per hour. 2. Determine the amount of applied overhead if 18,700 actual hours are worked in the upcoming year