Maynard Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for

2014:

Budgeted manufacturing overhead costs	$4,150,000
Budgeted machine-hours	166,000
Actual manufacturing overhead costs	$3,990,000
Actual machine-hours	161,000

1.

Calculate the budgeted manufacturing overhead rate.

2.

Calculate the manufacturing overhead allocated during 2014.

3.

Calculate the amount of under- or overallocated manufacturing overhead. Why do Maynard's managers need to calculate thisamount?

Requirement 1. Calculate the budgeted manufacturing overhead rate.

Determine the formula, then calculate the budgeted manufacturing overhead rate.

	/		=	Budgeted manufacturing overhead rate
	/		=