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 $ 347,800 Factory machinery depreciation 57,000 Factory supervisor salaries 139,500 Factory direct labor 214,693 Factory supplies 38,400 Factory property tax 25,750 Advertising cost 27,500 Administrative salaries 48,000 Administrative-related depreciation 26,200 Total expected costs

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 18,800 actual hours are worked in the upcoming year.

Bike parts$347,800

Factory machinery depreciation 57,000

Factory supervisor salaries 139,500

Factory direct labor 214,693

Factory supplies 38,400

Factory property tax 25,750

Advertising cost 27,500

Administrative salaries 48,000

Administrative-related depreciation 26,200

Total expected costs$924,843