Rochester Ltd. has budgeted $435,000 for manufacturing overhead for the upcoming year. It forecast that 72,500 machine hours will be used in the factory, and budgeted direct labour-hours were 17,400. The average direct labour rate is budgeted to be $20. Actual data for the year were:

Actual manufacturing overhead.....$434,300

Actual machine hours............ 73,010

Actual direct labour wage rate..... $ 19.60

Actual direct labour-hours worked..... 17,630

REQUIRED

1. Compute the budgeted manufacturing overhead rate under each of the following cost drivers:

a. Direct labour-hours

b. Direct labour cost

c. Machine hours

2. Compute the amount of underallocated or overallocated manufacturing overhead under each of the cost drivers listed in requirement 1.