Question: Fancy 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

Fancy 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.

Budgeted overhead $940,000

Actual overhead $970,000

Budgeted decorator hours 60,000

Actual decorator hours 59,000

What is the predetermined overhead rate you will use in applying overhead into work in process?

	a.	$ 15.67 per decorator hour.
	b.	$31.75 per decorator hour.
	c.	$ 22.80 per decorator hour.
	d.	$33.49 per decorator hour.

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