Thao Inc. uses normal costing to allocate manufacturing overhead based on machine

hours.

Thao$$s current year budget data are as follows:

Budgeted factory overhead $$1,312,000$

Budgeted machine hours $82,000$

Budgeted production units $41,000$

Actual results for the current year are:

Actual factory overhead $$1,201,000$

Actual machine hours $86,300$

Actual production units $39,400$

a$.$ Calculate Thao$$s predetermined manufacturing overhead rate.

b$.$ Calculate the amount of overhead allocated for the period.

c$.$ Calculate the amount of under or over allocated overhead. Clearly indicate whether the overhead

amount is $$under$-$allocated$$ or $$over$-$allocated$.$

d$.$ What is the cause or issue for your answer to part c$.?$ Provide one cause or issue, not multiple or

several $($no points for providing multiple causes$/$issues$).$