Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for

20142014:

Budgeted manufacturing overhead costs	$4,200,000
Budgeted machine-hours	175,000
Actual manufacturing overhead costs	$4,050,000
Actual machine-hours	170,000

Calculate the amount of under- or overallocated manufacturing overhead. Why do GammaroGammaro's managers need to calculate this amount? The manufacturing overhead is overallocated by $ 3000030000. Why do GammaroGammaro's managers need to calculate this amount? GammaroGammaro's managers need to calculate the under- or overallocated manufacturing overhead at the of the year because the overhead costs allocated are based on . These adjustments the reported income used to evaluate managerial performance.