Darby Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Darby allocates manufacturing overhead costs using direct manufacturing labor costs. Darby provides the following information: Budget Actual Results for 2012 for 2012 $ 2,200,000 $ 2,050,000 1,450,000 1,500,000 Direct material costs Direct manufacturing labor costs Manufacturing overhead costs 2,925,000 2,900,000 1.Compute the actual and budgeted manufacturing overhead rates for 2012. 2.During March, the job-cost record for Job 626 contained the following information: Direct materials used: $65,000 Direct manufacturing labor costs: $60,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2012, 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 Darby Products prefer to use normal costing?|