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4-22 Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system...

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Accounting

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4-22 Actual costing, normal costing, accounting for manufacturing overhead. Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dakota allocates manufacturing overhead costs using direct manu- facturing labor costs. Dakota provides the following information: Direct material costs Direct manufacturing labor costs Manufacturing overhead costs Budget for 2017 $2,250,000 1,700,000 3,060,000 Actual Results for 2017 $2,150,000 1,650,000 3,217,500 1. Compute the actual and budgeted manufacturing overhead rates for 2017. 2. During March, the job-cost record for Job 626 contained the following information: Direct materials used $55,000 Direct manufacturing labor costs $45,000 Compute the cost of Job 626 using (a) actual costing and (b) normal costing. 3. At the end of 2017, compute the under- or overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated manufacturing overhead under actual costing? 4. Why might managers at Dakota Products prefer to use normal costing

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