Dusi ig Inbor coste Duetin prodidos the following information (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool Dustin allocates manufacturing overhead costs using direct (Click the icon to view the information. Read the requirements 2017. (Enter your answer Requirement 1.Compute the actual and budgeted manufacturing overhead rates sa number [not as a percentage] rounded to two decimal places, X.XX.) Actual manufacturing overhead rate Budgeted manufacturing overhead rate Requirement 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $50,000 $40,000 Compute the cost fJob 626 using (a) actual costing and (b) normal costing. Actual Normal Costing Costing Direct materials Direct manufacturing labor costs Manufacturing overhead costs Total manufacturing costs of Job 626 Requirement 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under nomal costing. Why is there no under-or overallocated overhead under actual costing? by $ Under normal costing, manufacturing overhead is Why is there no under- overallocated overhead under actual costing? manufacturing labor costs and the manufacturing overhead rate. There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying Requirement 4. Why might managers at Dustin Products prefer to use normal costing? (Choose all that apply.) A. Normal costing provides managers with information at the end of a fiscal year when they know actual manufacturing overhead costs. This approach is preferable to managers to improve the company's spending efficiency and increase overall profits. the budgeted manufacturing overhead rate determined at the beginning of the B. Dustin Products to to estimate the cost of a job as soon as the job is completed, Managers want to know job costs for ongoing uses, including pricing jobs, monitoring and managing costs. evaluating the suCcess of the job, learning about what did and did not work, bidding on new jobs, and preparing interim financial statements. C. Normal costing allows managers to allocate overhead costs at the end of the accounting year. This allows Dustin Products to use the normal costs incurred to provide an accurate costing method so that adjustments will not need to be made at the end of the accounting year. Normal costing provides managers with information earlier-while there is still time to take corrective actions, such as improving the company's labor efficiency or reducing the company's overhead costs. D. andracturing costs of a jod h dr na hoa heexparioe f tns manufacturing and sales managers can evaluate the profitability of different jobs, the efficiency with which the jobs are Dusi ig Inbor coste Duetin prodidos the following information (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool Dustin allocates manufacturing overhead costs using direct (Click the icon to view the information. Read the requirements 2017. (Enter your answer Requirement 1.Compute the actual and budgeted manufacturing overhead rates sa number [not as a percentage] rounded to two decimal places, X.XX.) Actual manufacturing overhead rate Budgeted manufacturing overhead rate Requirement 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $50,000 $40,000 Compute the cost fJob 626 using (a) actual costing and (b) normal costing. Actual Normal Costing Costing Direct materials Direct manufacturing labor costs Manufacturing overhead costs Total manufacturing costs of Job 626 Requirement 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under nomal costing. Why is there no under-or overallocated overhead under actual costing? by $ Under normal costing, manufacturing overhead is Why is there no under- overallocated overhead under actual costing? manufacturing labor costs and the manufacturing overhead rate. There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying Requirement 4. Why might managers at Dustin Products prefer to use normal costing? (Choose all that apply.) A. Normal costing provides managers with information at the end of a fiscal year when they know actual manufacturing overhead costs. This approach is preferable to managers to improve the company's spending efficiency and increase overall profits. the budgeted manufacturing overhead rate determined at the beginning of the B. Dustin Products to to estimate the cost of a job as soon as the job is completed, Managers want to know job costs for ongoing uses, including pricing jobs, monitoring and managing costs. evaluating the suCcess of the job, learning about what did and did not work, bidding on new jobs, and preparing interim financial statements. C. Normal costing allows managers to allocate overhead costs at the end of the accounting year. This allows Dustin Products to use the normal costs incurred to provide an accurate costing method so that adjustments will not need to be made at the end of the accounting year. Normal costing provides managers with information earlier-while there is still time to take corrective actions, such as improving the company's labor efficiency or reducing the company's overhead costs. D. andracturing costs of a jod h dr na hoa heexparioe f tns manufacturing and sales managers can evaluate the profitability of different jobs, the efficiency with which the jobs are
