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		$380,000
Shop direct labor		1,872,000
Shop and repair equipment depreciation		62,500
Shop supervisor salaries		240,000
Shop property taxes		36,940
Shop supplies		10,000
Advertising expense		28,000
Administrative office salaries		150,000
Administrative office depreciation expense		8,000
	Total costs and expenses	$2,787,440

The average shop direct labor rate is $37.50 per hour.

Determine the predetermined shop overhead rate per direct labor hour. ______$ per direct labor hour