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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.
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