Question
Destin Products uses a job-costinf system with two direct cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool Destin allocates
Destin Products uses a job-costinf system with two direct cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool Destin allocates manufacturing overhead costs using direct manufacturing labor costs. Destin proves the following information in the photo .
1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2. During March, the job cost record for Job 626 contained the following information: Direct materials used $40,000 Direct manufacturing labor costs $35,000 Compute the cost of Job 626 using a) actual costing and b) normal costing 3. At the end of 2017, compute the under or over allocated manufacturing overhead under normal costing. Why is there no under or over allocated under actual costing? 4. Why might managers at Destin Products prefer to use normal costing?
overhead rates for 2017. (Enter your answer as a number (not as a percentage] rounded to two decimal places, X.XX.) i Data Table - X Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2017 Actual Results for 2017 2,100,000 $ 1.975,000 1,800,000 1,725,000 3,330,000 3,363,750 Print Done
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