Question 2 O out of 2 points The Lynn Company uses a normal job-costing system at its Minneapolis plant. The plant ha a machining department and an assembly department. Its job-costing system has two direct cost categories (direct materials and direct manufacturing labor) and two manufacturin; overhead cost pools (the machining department overhead, allocated to jobs based on actua machine hours, and the assembly department overhead, allocated to jobs based on actua direct manufacturing labor costs). The 2014 budget for the plant is as follows: Machining Department Assembly Department Manufacturing overhead $1,800,000 $3,600,000 $1,400,000 $2,000,000 Direct manufacturing labor costs Direct manufacturing labor hours 100,000 200,000 Machine-hours 50,000 200,000 During February the job cost record for Job 494 contained the following: Machining Department Assembly Department Direct materials used $45,000 $70,000 Direct manufacturing labor costs $14,000 $15,000 Direct manufacturing labor hours 1,000 1,500 Machine-hours 2,000 1,000 At the end of 2014 the actual manufacturing overhead costs were $2,100,000 in machining. Assume that 55,000 actual machine hours were used in machining. Calculate the machining department overhead allocation rate and present your answer as Calculate the machining department overhead allocation rate and present your answer as $/allocation base [1] State whether the overhead for the machining department is overallocated or underallocated [2]