Job Costing. Must show your work/calculations. (6 1. Home Decor Manufacturing, Inc. uses a job order costing system to collect the costs of the custom manufactured brass door knockers it sells. Because each brass door knocker is a custom order, each brass door knocker is treated as a separate job. Overhead is applied to each job based on the number of direct labor hours. Listed below are data for the current year: Estimated Overhead Actual Overhead Estimated direct labor hours Actual direct labor hours A. Compute the predetermined overhead rate: $864,000 $896,000 48,000 50,000 B. Determine whether the Operating Overhead (Service industry calls it Operating Overhead instead of Manufacturing Overhead) was under or overapplied and by hour much: Under or Overapplied Operating Overhead (circle one) Amount: S C. Prepare the adjusting journal entry for the over or underapplied Operating Overhead: (Service industry calls it Operating Overhead instead of Manufacturing Overhead) Account Title Dr Cr