Consider the following selected cost data for Schwarzmetal GmbH for 2019.

• Budgeted manufacturing overhead ..........................   €7 000,000
• Budgeted machine-hours ..........................................    200,000
• Actual manufacturing overhead .........................          €6 800,000
• Actual machine-hours .............................................        195,000

Schwarzmetal’s job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machine-hours). Any  amount of under- or overallocation is immediately written off to Cost of Goods Sold.

Required
1. Calculate the budgeted manufacturing overhead rate.
2. Journalise the allocation of manufacturing overhead.
3. Calculate the amount of under- or overallocation of manufacturing overhead. Is the amount significant? Journalise the disposition of this amount on the basis of the closing balances in the relevant accounts.