Cost and management accounting

Chapter 19. Managerial Accounting, or chapter 20. Job Order Costing, or chapter 21. Process Costing, or chapter23. Budgetary Planning, or chapter 22. Cost-Volume Profit.

Please solve as soon as possible I need this in 10 minutes

1. Muscat Interior Decorators uses a job order costing system to collect the costs of its interior decorating business. Each clients consultation is treated as a separate job.

Overhead is applied to each job based on the number of decorator hours incurred.

Listed below are data for the current year.

Budgeted overhead $ 620,000

Actual overhead $591,400

Budgeted decorator hours 40,000

Actual decorator hours 40,250

The company uses Operating Overhead in place of Manufacturing Overhead.

Required:

1. Compute the predetermined overhead rate.
2. Determine whether the overhead was under- or over applied and by how much.