Predetermined Factory Overhead Rate

Willies 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		$534,300
Shop direct labor		390,000
Shop and repair equipment depreciation		47,300
Shop supervisor salaries		131,500
Shop property tax		23,900
Shop supplies		18,300
Advertising expense		10,700
Administrative office salaries		45,900
Administrative office depreciation expense		5,900
	Total costs and expenses	$1,207,800

The average shop direct labor rate is $15 per hour.

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