Paragraph Styles Question 2 (Budgeted manufacturing overhead rate, allocated manufacturing overhead) (25 Marks) Taylor 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 $3,800,000 Budgeted machine-hours 200,000 Actual manufacturing overhead costs $3,660,000 Actual machine-hours 196,000 Required: 1. Calculate the budgeted manufacturing overhead rate. 2. Calculate the manufacturing overhead allocated during 2017 3. Calculate the amount of under- or overallocated manufacturing overhead. 4. Why do Taylor's managers need to calculate the under- or overallocated manufacturing overhead ? Explain