Sunland 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 Actual overhead costs Estimated decorator hours Actual decorator hours $827,200 $845,154 (a) 37,600 38,070 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. Compute the predetermined overhead rate. Predetermined overhead rate $ per decorator hour

Sunland 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. 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. (a) Compute the predetermined overhead rate. Predetermined overhead rate per decorator hour