Exercise 15-13

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.

Exercise 15-13 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 $1,080,000 Actual overhead $1,018,800 Estimated decorator hours 40,000 Actual decorator hours 37,100 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. Compute the predetermined overhead rate. Predetermined overhead rate per decorator hour SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Prepare the entry to apply the overhead for the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO VIDEO Determine whether the overhead was under- or overapplied and by how much. Overhead $ v Click if you would like to Show Work for this question: Open Show Work