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	$	355,800
Factory machinery depreciation		53,500
Factory supervisor salaries		141,500
Factory direct labor		222,824
Factory supplies		40,400
Factory property tax		26,250
Advertising cost		21,500
Administrative salaries		50,000
Administrative-related depreciation		22,200
Total expected costs	$	933,974

Required:

1. Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $12.11 per hour.

2. Determine the amount of applied overhead if 17,600 actual hours are worked in the upcoming year.