Sheridan 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 $1,000,000 Actual overhead $1,080,800 Estimated decorator hours 40,000 Actual decorator hours 40,700 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.)