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

Actual manufacturing overhead rate

Budgeted manufacturing overhead rate

Requirement $2.$ Compute the cost of Job $626$ using $($a$)$ an actual$-$costing system and $($b$)$ a normal$-$costing system. $($Round your answers to the nearest whole dollar.$)$

$\backslash$table$[[,$Actual Costing,Normal Costing$],[$Direct materials,,$],[$Direct manufacturing labour costs,,$],[$Manufacturing overhead costs,,$],[$Total manufacturing costs of Job $626,,]]$

Requirement $3.$ At the end of the year, compute the underallocated or overallocated manufacturing overhead under Desert's normal$-$costing system. Why is there no underallocated or overallocated overhead under Desert's actual$-$costing system?

First, calculate the underallocated or overallocated manufacturing overhead under Desert's normal$-$costing system. $($Round your answer to the nearest whole dollar.$)$

Under Desert's normal$-$costing system, manufacturing overhead is $$ by $

Why is there no underallocated or overallocated overhead under Desert's actual$-$costing system?

There is no underallocated or overallocated overhead under the actual$-$costing system because overhead is al and the $$ manufacturing overhead rate.

Requirement $4.$ Comment briefly on the advantages and disadvantages of actual$-$costing systems and norma

$$ systems reflect the results that occurred, while $$ systems reflect expectatior advance and, thus, $$ be used in pricing, planning, and cost management decisions.

$\backslash$table$[[,\backslash$table$[[$Budget for the$],[$Year$]],\backslash$table$[[$Actuals for the$],[$Year$]]],[\backslash$table$[[$Direct manufacturing labour costs$],[$Direct manufacturing overhead$],[$costs$]],1,650,000$$$,1,570,000$