Gene Simmons Company uses normal costing in each of its three manufacturing departments. Manufacturing overhead is applied to production on the basis of direct labor cost in Department A, machine hours in Department B, and direct labor hours in Department C. In establishing the predetermined overhead rates for the current year, the following budgeted data was available: The following actual information is available for January of the current year for each department: What two disadvantages are associated with actual costing? How does a normal costing "solve" these problems? Compute the pre-determined overhead rate for the current year for each department. Compute the manufacturing overhead applied in January in each department. Compute under- or over-applied overhead at the end of January in each department- -be sure to label the amount as under- or over-applied. How will the balance of the Factory Overhead account of each department be reported on the financial statements at the end of (1) January and (2) the year