Dakota Products uses a job$-$costing system with two direct$-$cost categories $($direct materials and direct manufacturing labor$)$ and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Dakota provides the following information:

$($Click the icon to view the information.$)$

Read the requirements.

Requirement $1.$ Compute the actual and budgeted manufacturing overhead rates for $2020.($Enter your answer as a number $[$not as a percentage$]$ rounded to two decimal places, XXX$.)$

Actual manufacturing overhead rate $,=$

Budgeted manufacturing overhead rate $=$

Requirements

Compute the actual and budgeted manufacturing overhead rates for $2020.$

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

Direct materials used

$$55,000$

Direct manufacturing labor costs

$$45,000$

Compute the cost of Job $626$ using $($a$)$ actual costing and $($b$)$ normal costing.

$3.$ At the end of $2020,$ compute the under$-$ or overallocated manufacturing overhead under normal costing. Why is there no under$-$ or overallocated overhead under actual costing?

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