Marigold 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 $1,000,000 $1,040,800 Estimated overhead Actual overhead Estimated decorator hours Actual decorator hours 40,000 40,900 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. Your answer is correct Compute the predetermined overhead rate. Predetermined overhead rate $ 25.00 per decorator hour Predetermined overhead rate $ 25.00 per decorator hour List of Accounts Your answer is partially correct. Prepare the entry to apply the overhead for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Operating Overhead 40800 List of Accounts Operating Overhead 40800 List of Accounts Your answer is partially correct. Determine whether the overhead was under or overapplied and by how much, Overhead $ 45 Underapplied List of Accounts