Question 3 (4 Marks) Waheed Company uses a normal costing system. It allocates manufacturing overhead costs using a budgeted rate per machine-hour and actual machine-hours. The following data is available for 2016: Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $2,850,000 190,000 $2,970,000 200,000 1. Calculate the amount of under-allocated or over-allocated manufacturing overhead. 2. How would you adjust for the under/over allocation? What financial statement account would have to increase/decrease?