1.Compute the actual and budgeted manufacturing overhead rates for 2017.

2.DuringMarch, thejob-cost record for Job 626 contained the followinginformation:

Direct materials used $40,000, Direct manufacturing labor costs $35,000

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

3.At the end of 2017, compute theunder- or overallocated manufacturing overhead under normal costing. Why is there nounder- or overallocated overhead under actualcosting?

4.Why might managers at Destin Products prefer to use normalcosting?

Budget for 2017

Direct material costs $2,150,000

Direct manufacturing labor costs $1,550,000

Manufacturing overhead costs $2,945,000

Actual Results for 2017

Direct material costs $2,025,000

Direct manufacturing labor costs $1,490,000

Manufacturing overhead costs $3,129,000

Answer rating: 100% (QA)

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