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 1. Compute the actual and budgeted manufacturing overhead rates for the year. 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. 3. 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 actualcosting system? 4. Comment briefly on the advantages and disadvantages of actual-costing systems and normal-costing systems. Check Figure: 1 . Budget is 85% of direct labour-costs