Pharoah 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 $720,000 Actual overhead costs $736,290 Estimated decorator hours 36,000 Actual decorator hours 36,450 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. Your answer correct. Compute the predetermined overhead rate. Predetermined overhead rate $ 20 per decorator hour e Textbook and Media List of Accounts Your answer is partially correct. 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 Work in Process Inventory 800000 Operating Overhead 80001 Determine whether the overhead was under-or overapplied and by how much. Overhead $ 142800 Underapplied e Textbook and Media List of Accounts