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 $ 356,800

Factory machinery depreciation 58,500

Factory supervisor salaries 136,000

Factory direct labor 201,425

Factory supplies 37,900

Factory property tax 34,250

Advertising cost 26,000

Administrative salaries 52,000

Administrative-related depreciation 18,200

Total expected costs $ 921,075 Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $11.51 per hour.

2. Determine the amount of applied overhead if 17,700 actual hours are worked in the upcoming year.