Ryan Industries charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labour hours. The data pertain to the current year is attached below :

Refer to the attachment and Determine the predetermined overhead rate and determine the under / over allocation of overhead

Budgeted manufacturing overhead $1,800.000 Actual manufacturing overhead 1,810,000 Budgeted labour hours 60,000 Actual labor hours 61,500