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The Quality Chocolatess (Quality) uses a job-costing system with two direct cost categories: direct materials and direct manufacturing labour- abbreviated to DM and DL, respectively.
The Quality Chocolatess (Quality) uses a job-costing system with two direct cost categories: direct materials and direct manufacturing labour- abbreviated to DM and DL, respectively. It also has one manufacturing overhead cost pool, which they abbreviate to MOH. Quality allocates its MOH using DL costs and provides you with the following information: DM DL MOH 1. Compute the actual and budgeted manufacturing overhead rates for the year. 2. You were given the following information: a. job A-13: DM used: $48,000 DL: $27,000 Compute the cost of Job A-13 using (a) an actual-costing system and (b) a normal-costing system. 3. Compute under- or over-allocated MOH using Quality's normal-costing system. Comment on your results and explain them. Would your results be different if actual costing was used? If not, why not? And if they would be different, explain why
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