Lamp Decor Manufacture lamp shades. The cost of primary materials (wire, frames and fabric) can be traced directly to the products. The cost factory supervisor salaries and depreciation of machinery are considered to be overhead cost. Manufacturing overhead cost are allocated based on machine hours. The manufacturing data for 2019 is as follows:

Machine hour (binding equipment)- Budget 16,000 hours, Actual 15,000 hours

Direct Labor Cost- Budget $30,000, Actual $34,000

Factory Supervisor's salary- Budget $50,000, Actual $46,000

Wires, Frames and fabric- Budget $25,000, actual $31,000

Depreciation on the binding equipment- Budget $33,200, Actual $33,200

Required to answer:

1) Calculate the predetermined manufacturing overhead rate.

2) Calculate the total amount of overhead allocated.

3)Determine the balance for the manufacturing overhead account.

Actual $ $ Applied

Balance:

4) Is the manufacturing overhead account over or under-allocated? By how much?