Pure Decorating uses a job order cost system to collect the costs of its interior decorating business. Each clients 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		$944,400
Actual overhead		$827,980
Estimated decorator hours		47,220
Actual decorator hours		40,860

The company uses Operating Overhead in place of Manufacturing Overhead.

Compute the predetermined overhead rate.

Predetermined overhead rate

$

per decorator hour

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
Applied overhead