EXERCISE $1$:

Carolin Chemicals produces a range of chemical products for industries on

orders. It uses a job$-$costing system to calculate the cost of a particular job. Materials and

labors used in the manufacturing process are direct in nature, but manufacturing overhead

is allocated to different jobs using direct manufacturing labor costs. Carolin provides the

following information:

Required:

Compute the actual and budgeted manufacturing overhead rates for $2017.$

During March, the job$-$cost records for Job $635$ contained the following

Direct materials used

Direct manufacturing labor costs

$$51,000$

Compute the cost of Job $635$ using $($a$)$ actual costing and $($b$)$ normal