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7.4 W HOW E10-15 Predetermined factory overhead rate Novus Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows Engine parts Shop direct labor Shop and repair equipment depreciation Shop supervisor salaries Shop property taxes Shop supplies Advertising expense Administrative office salaries Administrative office depreciation expense Total costs and expenses $1,257,500 550,000 91,000 250,000 40,000 15,000 75,000 175,000 12,500 $2.466,000 The average shop direct labor rate is $25 per hour. Determine the predetermined shop overhead rate per direct labor hour