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E4-19 (Budgeted Manufacturing Overhead Rate, Allocated
Manufacturing Overhead, pages 127-128) (Horngren, Datar, & Rajan,
2012) Gammaro Company uses normal costing. It allocates
manufacturing overhead costs using a budgeted rate per machine-
hour. The following data are available for 2011:
Budgeted manufacturing overhead costs
Budgeted machine-hours
Actual manufacturing overhead costs
Actual machine-hours
$4,200,000
175,000
$4,050,000