Cullumber Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's 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 costs $$739,200$

Actual overhead costs $$755,244$

Estimated decorator hours $,33,600$

Actual decorator hours $,34,020$

The company uses the account Operating Overhead in place of Manufacturing Overhead, and the account Service Contracts in

Process in place of Work in Process Inventory.

Compute the predetermined overhead rate.

Predetermined overhead rate $$,$ per decorator hour

Prepare the entry to apply the overhead for the year. $($List all debit entries before credit entries. Credit account titles are automatically

indented when amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

Determine whether the overhead was under$-$ or overapplied and by how much.

Overhead $