Module 3: Job Costing Question 3 (4 marks) Carolina Chemicals produces a range of chemical products for industries on getting bulk orders It uses a job-costing system to calculate the cost of a particular job. Materials and labours used in the manufacturing process are direct in nature, but manufacturing overhead is allocated to different jobs using direct manufacturing labour costs. Carolina provides the following infomation: Budget for 2017 $2,750,000 $1,830,000 Actual Results for 2017 $3,000,000 Direct material costs Direct manufacturing labour costs $2,250,000 Manufacturing overhead costs $3,294,000 $3,780,000 Requirements: 1) Compute the actual and budgeted manufacturing overhead rates for 2017 2) During March, the job-cost records for Job 635 contained the following information: Costs of direct materials used $73,500 Costs of direct manufacturing labour Compute the cost of Job 635 using: (a) actual costing, and, (b) normal costing 3) At the end of 2017, compute the under- or over-allocated manufacturing overhead under normal costing. Why is there no under- or over-allocated overhead under actual costing? $51,000 4) Why might managers at Carolina Chemicals prefer to use normal costing