Consider the following selected cost data for the Pittsburgh Forging Company for 2011.

Budgeted manufacturing overhead costs             $7,500,000
Budgeted machine-hours                                           250,000
Actual manufacturing overhead costs                  $7,300,000
Actual machine-hours                                                245,000

The company uses normal costing. Its job-costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted machine-hour rate. Any amount of under- or overallocation is written off to Cost of Goods Sold.

Required
1. Compute the budgeted manufacturing overhead rate.
2. Prepare the journal entries to record the allocation of manufacturing overhead.
3. Compute the amount of under- or overallocation of manufacturing overhead. Is the amount material? Prepare a journal entry to dispose of this amount.