Consider the following selected data for the Spanish Town Manufacturing 4. Company for 2009.

Budgeted manufacturing overhead $7,000,000 Budgeted machine-hours 200,000 Actual manufacturing overhead $6,800,000 Actual machine-hours 195,000

The company uses normal costing. Its job costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or over-allocation is written off to Cost of Goods Sold.

a) Compute the budgeted manufacturing overhead rate.

b) Calculate the manufacturing overhead allocated during 2009

c) Compute the amount of under or over the allocation of manufacturing overhead. Do you believe the amount is material? Prepare a journal entry to dispose of this amount.