Predetermined Factory Overhead Rate

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	$1,446,700
Shop direct labor	1,056,000
Shop and repair equipment depreciation	71,600
Shop supervisor salaries	199,000
Shop property taxes	36,100
Shop supplies	27,700
Advertising expense	28,900
Administrative office salaries	124,400
Administrative office depreciation expense	15,900
	Total costs and expenses	$3,006,300

The average shop direct labor rate is $24.00 per hour.

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