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Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming

Exotic 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 $1,198,800
Shop direct labor 875,000
Shop and repair equipment depreciation 50,900
Shop supervisor salaries 141,600
Shop property taxes 25,700
Shop supplies 19,800
Advertising expense 24,000
Administrative office salaries 103,100
Administrative office depreciation expense 13,200
Total costs and expenses $2,452,100

The average shop direct labor rate is $25.00 per hour.

Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent.

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