Marvell Manufacturing uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the direct labour cost required. At the beginning of the year, the company expected to incur the following:

Manufacturing overhead costs $1,200,000

Direct labour cost 600,000

Machine hours 40,000

At the end of the year, the company had actually incurred the following:

Direct labour cost $650,000

Depreciation on manufacturing plant and

equipment 680,000

Property taxes on plant 250,000

Sales salaries 12,000

Delivery drivers wages 8,000

Plant janitors wages 100,000

Machine hours 28,500 hours

Required:

1. Compute Marvell's predetermined overhead rate.

2. How much manufacturing overhead was allocated to jobs during the year?

3. How much manufacturing overhead was incurred during the year?

4. Is manufacturing overhead over allocated or under allocated at the end of the year and by how much?