Final answer:
The amount of under- or overallocated manufacturing overhead can be calculated by comparing the actual manufacturing overhead incurred with the allocated manufacturing overhead. Maynard's managers need to calculate this amount to determine the accuracy of their cost allocation system.
Step-by-step explanation:
The amount of under- or overallocated manufacturing overhead can be calculated by comparing the actual manufacturing overhead incurred with the allocated manufacturing overhead. If the actual overhead is higher than the allocated overhead, then there is an overallocation. If the actual overhead is lower than the allocated overhead, then there is an underallocation.
Maynard's managers need to calculate this amount to determine the accuracy of their cost allocation system. If there is a significant under- or overallocation, it indicates that the cost allocation system is not correctly assigning overhead costs to products. This can lead to inaccurate product costs and may affect decision-making and profitability.