Predetermined Factory Overhead Rate

Spring Street 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		$901,500
Shop direct labor		658,000
Shop and repair equipment depreciation		77,400
Shop supervisor salaries		215,300
Shop property tax		39,100
Shop supplies		30,100
Advertising expense		18,000
Administrative office salaries		77,500
Administrative office depreciation expense		9,900
	Total costs and expenses	$2,026,800

The average shop direct labor rate is $14 per hour.

Predetermined Factory Overhead Rate Spring Street 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 tax Shop supplies Advertising expense Administrative office salaries Administrative office depreciation expense $901,500 658,000 77,400 215,300 39,100 30,100 18,000 77,500 9,900 $2,026,800 Total costs and expenses The average shop direct labor rate is $14 per hour Determine the predetermined shop overhead rate per direct labor hour. Round the answer to nearest whole cent. per direct labor hour