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Predetermined Factory Overhead Rate

Turbo Shop uses job order costing to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:

Line Item Description	Amount
Engine parts	$400,000
Shop direct labor	1,992,000
Shop and repair equipment depreciation	64,220
Shop supervisor salaries	210,000
Shop property taxes	57,390
Shop supplies	14,500
Advertising expense	32,000
Administrative office salaries	230,000
Administrative office depreciation expense	12,000
Total costs and expenses	$3,012,110

The average shop direct labor rate is $40.00 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. fill in the blank 1 of 1$ per direct labor hour