Budgeted manufacturing overhead rate, allocated manufacturing overhead. Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine hour. The following data are available for 2011:
|
Budgeted manufacturing overhead costs |
$4,200,000 |
|
Budgeted machine hours |
175,000 |
|
Actual manufacturing overhead costs |
$4,050,000 |
|
Actual machine hours |
170,000 |
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2011.
3. Calculate the amount of under or overallocated manufacturing overhead.