E 15-13: Tombert Decorating uses a job order cost system for each client consultation decorating job. Overhead is applied to each job based on the number of decorator hours incurred. Data for the current year is as follows: Estimated overhead costs Actual overhead costs Estimated decorator hours Actual decorator hours $960,000 $982,800 40,000 40,500 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. (a) Compute the predetermined overhead rate. (b) Prepare the entry to apply the overhead for the year. (c) Determine whether the overhead was over or underapplied and by how much.