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Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing
Destin Products uses a job-costing 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 provides the following information: (Click the icon to view the information.) Read the requirements. Data table - Budget for 2020 2,100,000 $ 1,550,000 2,945,000 Actual Results for 2020 2,025,000 1,490,000 3,054,500 ter you Direct material costs $ Direct manufacturing labor costs Manufacturing overhead costs Requirements 1. Compute the actual and budgeted manufacturing overhead rates for 2020. 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used Direct manufacturing labor costs $35,000 $30,000 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 Destin Products prefer to use normal costing
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