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remax uses a job-order costing system to collect the costs of its interior decorating business. Each clients consultation is treated as a separate job. Overhead
remax uses a job-order costing 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 costs | $976,800 | ||
Actual overhead costs | $996,900 | ||
Estimated decorator hours | 40,700 | ||
Actual decorator hours | 41,240 |
The company uses Operating Overhead in place of Manufacturing Overhead, and Service Contracts in Process in place of Work in Process Inventory.
Calculate the predetermined overhead rate.
Predetermined overhead rate | $enter the predetermined overhead rate in dollars per decorator hour | per decorator hour |
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