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	$	349,800
Factory machinery depreciation		59,500
Factory supervisor salaries		136,000
Factory direct labor		220,898
Factory supplies		44,400
Factory property tax		32,750
Advertising cost		26,000
Administrative salaries		53,500
Administrative-related depreciation		25,200
Total expected costs	$	948,048

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 18,500 actual hours are worked in the upcoming year.