=+5-16 KK Actual costing, normal costing, accounting for manufacturing overhead OBJECTIVES 3, 4 Maverick Products uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Maverick Products allocates manufacturing overhead costs using direct materials costs.

Maverick Products provides the following information:

M05_HORN3377_02_LT_C05.indd 197 2/09/13 3:24 PM Budget for 2014 Actual results for 2014 Direct materials costs $2 000 000 $1 900 000 Direct manufacturing labour costs 1 500 000 1 450 000 Manufacturing overhead costs 4 425 000 4 567 500 Required 1 Calculate the actual and budgeted manufacturing overhead rates for 2014.