Actual costing, normal costing, manufacturing overhead. Destin Products uses a job 1B.u dgeted is 85% ofdi rect costing system with two direct-cost categories (direct materials and direct manufacturing labour costs labour) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labour costs. Destin provides the following information:

REQUIRED 1. Compute the actual and budgeted manufacturing overhead rates for 2010.
2. During March, the cost record for Job 626 contained the following:

Compute the cost of Job 626 using

(a) an actual costing system and

(b) a normal costing , system.
2 ; 3. At the end of 2010, compute the underallocated or overallocated manufacturing overhead under Destin’s normal costing system. Why is there no underallocated or overallocated overhead under Destin’s actual costing system?
20 4. Comment briefly on the advantages and disadvantages of actual costing systems and aD normal costing systems.LO1

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Budget for Year 2010 Actuals for Year 2010 Direct manufacturing labour costs $2,600,000 $2,540,000 Direct manufacturing overhead costs $2,210,000 $2,311,400 Direct materials costs $1,800,000 $1,740,000