Destin Products uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labour costs. Destin provides the following inf (Click the icon to view the information.) Required Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2018. (Enter the answers as dollar amounts only. Round your answer to two decimal places.) - Information Actual manufacturing overhead rate Budgeted manufacturing overhead rate Requirement 2. Compute the cost of Job 626 using (a) actual costing and (b) normal costing. Actual for Actual Normal Costing Costing Direct manufacturing labour costs Direct manufacturing overhead costs Direct material costs Budget for Year 2018 $ 1,600,000 $ $ 2,720,000 $ $ 2,100,000 $ Year 2018 1,520,000 2,812,000 2,050,000 Direct materials Direct manufacturing labour costs Manufacturing overhead costs Total manufacturing costs of Job 626 Print Done Requirement 3. At the end of 2018, compute the underallocated or overallocated manufacturing overhead under Destin's normal costing system. Under normal costing, manufacturing overhead is by $ Why is there no under- or overallocated overhead under actual costing? There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying the manufacturing labour costs and the V manufacturing overhead rate. Requirement 4. Comment briefly on the advantages and disadvantages of actual costing systems and normal costing systems. reflects the actual results incurred, while reflects expectations of the amount the overhead should be. Normal costing y be done in advance and thus V be used in pricing, planning, and cost management decisions. Destin Products uses a job-costing system with two direct cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labour costs. Destin provides the following inf (Click the icon to view the information.) Required Requirement 1. Compute the actual and budgeted manufacturing overhead rates for 2018. (Enter the answers as dollar amounts only. Round your answer to two decimal places.) - Information Actual manufacturing overhead rate Budgeted manufacturing overhead rate Requirement 2. Compute the cost of Job 626 using (a) actual costing and (b) normal costing. Actual for Actual Normal Costing Costing Direct manufacturing labour costs Direct manufacturing overhead costs Direct material costs Budget for Year 2018 $ 1,600,000 $ $ 2,720,000 $ $ 2,100,000 $ Year 2018 1,520,000 2,812,000 2,050,000 Direct materials Direct manufacturing labour costs Manufacturing overhead costs Total manufacturing costs of Job 626 Print Done Requirement 3. At the end of 2018, compute the underallocated or overallocated manufacturing overhead under Destin's normal costing system. Under normal costing, manufacturing overhead is by $ Why is there no under- or overallocated overhead under actual costing? There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying the manufacturing labour costs and the V manufacturing overhead rate. Requirement 4. Comment briefly on the advantages and disadvantages of actual costing systems and normal costing systems. reflects the actual results incurred, while reflects expectations of the amount the overhead should be. Normal costing y be done in advance and thus V be used in pricing, planning, and cost management decisions
