Waheed Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2006:
Budgeted manufacturing overhead costs ........................ $2,850,000
Budgeted machine-hours .......................................... 190,000
Actual manufacturing overhead costs ............................ $2,910,000
Actual machine-hours .............................................. 195,000
Required
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2006.
3. Calculate the amount of under- or over allocated manufacturing overhead.