Actual vs. Costing Dakota Manufacturing uses a job order costing system. The firm has two direct cost categories (direct materials and direct labor) and one indirect cost category (manufacturing overhead). Manufacturing overhead is allocated based on direct labor costs ($). The following information is provided for fiscal year 2021: Direct Materials Costs Budgeted $ 735,000 Actual $ 808,500 Direct Labor Costs Manufacturing Overhead $ 468,000 $1,235,000 $ 444,600 $1,333,800 1. Compute the overhead rate using normal costing. 2. Compute the overhead rate using actual costing. During October, the job-cost record for Job 323 contained the following information: Direct Materials Used $38,500 Direct Labor Costs $42,600 3. Compute the total manufacturing costs using (a) normal costing and (b) actual costing Job 323 Direct Materials Direct Labor Manuf. Overhead Total Mfr. Costs Normal Costing Actual Costing Seven Steps in Cost Allocation (Job Order Costing) Spartans Inc. produces custom widgets. Each widget uses $18.50 in materials and 2.3 labor hours. Labor is paid at a rate of $15.00 per hour. Total manufacturing overhead for the year is estimated at $235,000. Spartans uses direct labor hours as it allocation base and anticipates using 8,500 total labor hours (across all jobs). Spartans receives an order of 320 units (Job 736). Use the seven steps in cost allocation to identify, classify, and allocate costs. Step 1: What is the cost object? Step 2: What are the direct costs? Identify and calculate the direct costs for Job 736