Actual Costing Normal Costing Accounting For Manufacturing Overhead

Actual costing, normal costing, accounting for manufacturing overhead. Destin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Destin allocates manufacturing overhead costs using direct manufacturing labor costs. Destin provides the following information:

1. Compute the actual and budgeted manufacturing overhead rates for 2009.

2. During March, the job-cost record for Job 626 contained the following information:

Direct materials used $40,000

Direct manufacturing labor costs $30,000

Compute the cost of Job 626 using (a) actual costing and (b) normal costing.

3. At the end of 2009, compute the under- or over allocated manufacturing overhead under normal cost1n 9Why is there no under- or over allocated overhead under actual costing?

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