$4-18$ Actual costing, normal costing, manufacturing overhead. $(LO3,4,5)$ Destin

Products uses a job$-$costing system with two direct cost categories $($direct materials

and direct manufacturing labour$)$ and one manufacturing overhead cost pool.

Destin allocates manufacturing overhead costs using direct manufacturing labour

costs. Destin provides the following information:

Required

Compute the actual and budgeted manufacturing overhead rates for the

year.

During March, the cost record for Job $626$ contained the following:

Direct materials used

Direct manufacturing labour costs

$$48,000$

$27,000$

Compute the cost of Job $626$ using $($a$)$ an actual$-$costing system and $($b$)$ a

normal$-$costing system.

At the end of the year, 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?

Comment briefly on the advantages and disadvantages of actual$-$costing

systems and normal$-$costing systems.