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	$	338,800
Factory machinery depreciation		54,500
Factory supervisor salaries		136,000
Factory direct labor		212,628
Factory supplies		39,900
Factory property tax		33,250
Advertising cost		21,500
Administrative salaries		50,500
Administrative-related depreciation		25,200
Total expected costs	$	912,278

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.31 per hour.

2. Determine the amount of applied overhead if 18,500 actual hours are worked in the upcoming year.