Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and...

 Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information:

1. 
   

   Compute the actual and budgeted manufacturing overhead rates for 2017.

   
   


2. 
   

   During March, the job-cost record for Job 626 contained the following information:

   
   
   
   Direct materials used                                    55,000
   
   
   
   
   Direct manufacturing labor costs                45,000
   
   
   

   Compute the cost of Job 626 using (a) actual costing and (b) normal costing.

   
   


3. 
   

   At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated manufacturing overhead under actual costing?

   
   


4. 
   

   Why might managers at Dakota Products prefer to use normal costing?