heelers 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	$	349,800
Factory machinery depreciation		55,000
Factory supervisor salaries		141,500
Factory direct labor		214,508
Factory supplies		40,400
Factory property tax		30,750
Advertising cost		21,500
Administrative salaries		55,000
Administrative-related depreciation		18,200
Total expected costs	$	926,658

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.41 per hour.

2. Determine the amount of applied overhead if 18,700 actual hours are worked in the upcoming year.