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 actualcosting?

4. Why might managers at Dakota Products prefer to use normal costing?

	Budget for 2014	Actual Results for 2014
Direct material costs	$2,150,000	$2,025,000
Direct manufacturing labor costs	1,450,000	1,400,000
Manufacturing overhead costs	2,610,000	2,590,000