Buller Company uses normal costing. It allocates manufacturing overhead costs

using a budgeted rate per machine-hour. The following data are available for 2019:

Budgeted manufacturing overhead costs $4,800,000

Budgeted machine-hours 180,000

Actual manufacturing overhead costs $3,990,000

Actual machine-hours 150,000

Required:

1. Calculate the budgeted manufacturing overhead rate.

2. Calculate the manufacturing overhead allocated during 2019.

3. Calculate the amount of under- or overallocated manufacturing overhead. Why

do Buller's managers need to calculate this amount?