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	$	345,800
Factory machinery depreciation		53,000
Factory supervisor salaries		141,500
Factory direct labor		223,197
Factory supplies		44,900
Factory property tax		28,250
Advertising cost		24,500
Administrative salaries		46,500
Administrative-related depreciation		27,700
Total expected costs	$	935,347

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.61 per hour.

2. Determine the amount of applied overhead if 17,900 actual hours are worked in the upcoming year.