Verstraten Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017:

Budgeted manufacturing overhead costs

$3,950,000

Budgeted machine-hours

197,500

Actual manufacturing overhead costs

$3,790,000

Actual machine-hours

191,500

1.	Calculate the budgeted manufacturing overhead rate.
2.	Calculate the manufacturing overhead allocated during 2017.
3.	Calculate the amount of under- or overallocated manufacturing overhead. Why do Verstraten's managers need to calculate thisamount?