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E15.13 Pure Decorating uses a job order cost system to collect the costs of its interior decorating business. Each clients 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 Actual overhead Estimated decorator hours Actual decorator hours $920,000 $942,800 40,000 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 overhcad for the year (c) Determine whether the overhead was under- or overapplied and by how much.

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