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 $3800000

Budgeted machine hours 200000

Actual manufacturing overhead costs $3660000

Actual machine hours 196000

Required:

1.Calculate the budgeted manufacturing overhead rate.

2.Calculate the manufacturing overhead allocated during 2017.

3.Calculate the amount ofunder- or overallocated manufacturing overhead.

4.Why do managers need to calculatetheunder-or overallocated manufacturingoverhead?Explain