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Sandhill Decorating uses a job-order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job.
Sandhill Decorating uses a job-order costing 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: $940,700 $932.400 Estimated overhead costs Actual overhead costs Estimated decorator hours Actual decorator hours 40,900 40,130 The company uses Operating Overhead in place of Manufacturing Overhead and Service Contracts in Process in place of Workin Process inventory (a) Calculate the predetermined overhead rate. Predetermined overhead rate $ per decorator hour
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