Sunland 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. Estimated overhead Actual overhead Estimated decorator hours Actual decorator hours (a) $828,000 $855,400 40,000 The company uses Operating Overhead in place of Manufacturing Overhead. 41,000 Save for Later Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $ per decorator hour Attempts: 0 of 1 used Submit Answer
Sunland 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. Estimated overhead Actual overhead Estimated decorator hours Actual decorator hours (a) $828,000 $855,400 40,000 The company uses Operating Overhead in place of Manufacturing Overhead. 41,000 Save for Later Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 15.25.) Predetermined overhead rate $ per decorator hour Attempts: 0 of 1 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sunland 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.
Estimated overhead
Actual overhead
Estimated decorator hours
Actual decorator hours
(a)
$828,000
$855,400
40,000
The company uses Operating Overhead in place of Manufacturing Overhead.
41,000
Save for Later
Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 15.25.)
Predetermined overhead rate $
per decorator hour
Attempts: 0 of 1 used
Submit Answer
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