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$ 350,000Factory machinery depreciation55,000Factory supervisor salaries140,000Factory direct labor300,000Factory supplies7,500Factory property tax37,500Advertising cost14,500Administrative salaries80,000Administrative-related depreciation16,000Total expected costs$ 1,000,500

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $15 per hour.