1. The Lynn Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining department and an assembly department. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department overhead, allocated to jobs based on actual machine hours, and the assembly department overhead, allocated to jobs based on actual 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
   Direct manufacturing labor costs	$1,400,000	$2,000,000
   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 $/allocation base State whether the overhead for the machining department is overallocated or underallocated

   You must use the full word either underallocated or overallocated in your answer.