XYZ Company uses a job order cost system to determine the cost of doing repair work. The average shop direct labor rate is $25 per hour. Estimated costs and expenses for the coming year are as follows: 2) $675,000 400,000 60,000 110,000 30,000 12,000 40,000 87,000 10,000 Engine Parts Shop direct labor Depreciation on shop equipment Shop supervisor salaries Shop property taxes Shop supplies Advertising expense Administrative office salaries Administrative office depreciation expense Instructions; Calculate the predetermined overhead rate using direct labor hours as the activity base. (10 points)