Crane Decorating uses a job order cost 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.

Estimated overhead		$960,000
Actual overhead		$995,800
Estimated decorator hours		40,000
Actual decorator hours		40,700

The company uses Operating Overhead in place of Manufacturing Overhead.

Compute the predetermined overhead rate.

Predetermined overhead rate

$

per decorator hour