Easy decorating uses a job order costing system to collect

Reference no: EM13602616

Easy 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 $960,000
Actual overhead $982,800
Budgeted decorator hours 40,000
Actual decorator hours 40,500

The company uses Operating Overhead in place of Manufacturing Overhead.

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.

Reference no: EM13602616

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