E2-13 Pure Decorating uses a job order cost system to collect the costs of its interior deco- rating business. Each clie

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E2 13 Pure Decorating Uses A Job Order Cost System To Collect The Costs Of Its Interior Deco Rating Business Each Clie 1 (36.43 KiB) Viewed 10 times

E2-13 Pure Decorating uses a job order cost system to collect the costs of its interior deco- rating 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. $920,000 $942,800 Estimated overhead Actual overhead Estimated decorator hours Actual decorator hours The company uses Operating Overhead in place of Manufacturing Overhead. 40,000 40,500 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.