4-24 Budgeted manufacturing overhead rate, allocated manufacturing overhead. Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017:

Budgeted manufacturing overhead costs	$4,600,000
Budgeted machine-hours	184,000
Actual manufacturing overhead costs	$4,830,000
Actual machine-hours	180,000

Required:

1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2017.
3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Gammaros managers need to calculate this amount?