Q.4 If the actual costs for 2023 were as listed below,

a) calculate the Actual Manufacturing Overhead rate for each department.

b) use the actual rates to re-allocate for all costs related to Job 549.

ACTUAL 2023 COSTS Machining Department Assembly Department

Annual Manufacturing overhead $2,850,000.00 $ 3,400,000.00

Direct manufacturing labour costs $2,100,000.00 $ 2,800,000.00

Direct manufacturing labour-hours 185,000.00 170,000.00

Machine-hours 105,000.00 125,000.00

With reference to Q4., explain why a normal costing system might be used for this company rather than an actual costing system.