Candy plans on using normal costing. She allocates manufacturing overhead costs using a budgeted rate per labor-hour. The following are estimates for the period:

Budgeted Manufacturing Overhead Costs$98,020

Budgeted Labor Hours6,480

Actual Manufacturing Overhead Costs$95,000

Actual Labor Hours6,400

Required:

1. Calculate the budgeted manufacturing overhead rate.

2.Calculate the manufacturing overhead allocated for the period.

3.Calculate the amount of under-or overallocated manufacturing overhead. Why does Candy need to calculate this amount?