Nublado Company produces ski boots. At the beginning of the year, the cost manager estimated that overhead costs would be $2,910,000 and that the units produced would be 300,000. Actual data concerning production for the past year follow:

Brooks Manufacturing uses a normal costing system. Budgeted overhead for the coming year is $1,500,000. Expected actual activity is 400,000 direct labor hours.
During the year, Brooks worked a total of 384,000 direct labor hours and actual overhead totaled $1,400,000.
Required:

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Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units produced 100,000 40,000 20,000 140,000 300,000 Prime costs $2,000,000 $800,000 $400,000 $2,800,000 $6,000,000 Overhead costs $800,000 $600,000 $900,000 $700,000 $3,000,000 Required: 1. Calculate the unit cost for each quarter and for the year using the following costs: a. Actual prime costs b. Actual overhead costs C. Actual total manufacturing costs 2. What do the calculations in requirement 1 tell you about actual costing? 3. Using supporting calculations, describe how normal costing would work.