Predetermined Factory Overhead Rate

Spring Street 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		$875,000
Shop direct labor		660,000
Shop and repair equipment depreciation		44,500
Shop supervisor salaries		138,000
Shop property taxes		27,500
Shop supplies		10,000
Advertising expense		22,100
Administrative office salaries		73,500
Administrative office depreciation expense		8,600
	Total costs and expenses	$1,859,200

The average shop direct labor rate is $30 per hour.

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

$______________ per direct labor hour