Taylor Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017: (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the budgeted manufacturing overhead rate. Determine the formula, then calculate the budgeted manufacturing overhead rate. Budgeted manufacturing overhead rate = Requirement 2. Calculate the manufacturing overhead allocated during 2017. Requirement 2. Calculate the manufacturing overhead allocated during 2017. Determine the formula, then calculate the manufacturing overhead allocated during 2017. X Manufacturing overhead allocated X Requirement 3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Taylor's managers need to calculate this amount? The manufacturing overhead is by $ Why do Taylor's managers need to calculate this amount? Requirement 3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Taylor's managers need to calculate this amount? The manufacturing overhead is by $ Why do Taylor's managers need to calculate this amount? Taylor's managers need to calculate the under- or overallocated manufacturing overhead at the the reported income used to evaluate managerial performance. of the year because the overhead costs allocated are based on These adjustments Budgeted manufacturing overhead costs Budgeted machine-hours Actual manufacturing overhead costs Actual machine-hours $ 3,800,000 200,000 $ 3,660,000 196,000