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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

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 $993,300
Shop direct labor 725,000
Shop and repair equipment depreciation 49,000
Shop supervisor salaries 136,300
Shop property tax 24,700
Shop supplies 19,100
Advertising expense 19,900
Administrative office salaries 85,400
Administrative office depreciation expense 10,900
Total costs and expenses $2,063,600

The average shop direct labor rate is $25 per hour.

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

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