Wheelers Bike Company manufactures custom racing bicycles. The company uses a job order cost system to determine the cost of each bike. Estimated costs and expenses for the coming year follow:

Bike parts $ 343,800

Factory machinery depreciation 54,500

Factory supervisor salaries 141,000

Factory direct labor 215,934

Factory supplies 46,400

Factory property tax 25,250

Advertising cost 19,500

Administrative salaries 49,000

Administrative-related depreciation 17,700

Total expected costs $ 913,084

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.41 per hour.

2. Determine the amount of applied overhead if 18,600 actual hours are worked in the upcoming year.