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

Required:
1. Compute the actual and budgeted manufacturing overhead rates for 2014.
2. During March, the job-cost record for Job 626 contained the following information:

Direct materials used                                 $40,000
Direct manufacturing labor costs               $30,000

Compute the cost of Job 626 using (a) actual costing and (b) normal costing.
3. At the end of 2014, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated overhead under actual costing?
4. Why might managers at Destin Products prefer to use normal costing?