E$2-5($Algo$)$ Calculating Predetermined Overhead Rate and Applied Overhead $[$LO $2-3]$

Wheeler's 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:

Required:

Calculate the predetermined overhead rate per direct labor hour if the average direct labor rate is $$12\mathrm{.}51$ per hour.

Determine the amount of applied overhead if $18,300$ actual hours are worked in the upcoming year.

Answer is complete but not entirely correct.

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