E$13$ Tombert 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 $$960,000$

Actual overhead $$982,800$

Estimated decorator hours $40,000$

Actual decorator hours $40,500$The company uses Operating Overhead in place of Manufacturing

Overhead. Instructions$($a$)$ Compute the predetermined overhead rate.

$($b$)$ Prepare the entry to apply the overhead for the year.

$($c$)$ Determine whether the overhead was under$-$ or overapplied and by

how much.