$4-22.$ 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:

Required

$1.$ Compute the actual and budgeted manufacturing overhead rates for $2020.$

$2.$ During March, the job$-$cost record for Job $626$ contained the following information:

Direct materials used

$\backslash$$$55,000$

Direct manufacturing labor costs

$\backslash$$$45,000$

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

$3.$ At the end of $2020,$ 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?