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Problem
Maynard Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per? machine-hour. The following data are available for 2014?:
Budgeted manufacturing overhead costs $4,150,000Budgeted machine-hours 166,000Actual manufacturing overhead costs $3,990,000Actual machine-hours 161,000
1. Calculate the budgeted manufacturing overhead rate.2. Calculate the manufacturing overhead allocated during 2014.3. Calculate the amount of under- or overallocated.
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