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-   -   Actual and Normal costing (https://www.askmehelpdesk.com/showthread.php?t=316189)

  • Feb 11, 2009, 12:49 PM
    hannie51584
    Actual and Normal costing
    Dustin Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and one manufacturing overhead cost pool. Dustin allocates manufacturing overhead costs using direct manufacturing labor costs. Dustin provides the following information:

    Budgeted for 2009 Actual results for 2009
    Direct material costs $2,000,000 $1,900,000
    Direct manufacturing labor costs 1,500,000 1,450,000
    Manufacturing overhead costs 2,700,000 2,755,000

    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 overallocated manufacturing overhead under normal costing. Why is there no under- or overallocated overhead under actual costing?


    Please help me... I've read through my chapter a couple of times and I can't seem to find the correct formulas or make since of the information I have. If anyone could please help me at least find the correct formulas I would appreciate it.
  • Feb 22, 2009, 06:10 PM
    tracymcdonald
    Show me how to answer
  • Feb 22, 2009, 06:15 PM
    tracymcdonald

    Compute the cost of job 626 using actual cost and normal cost.
    Direct material used 40,000
    Direct manufacturing labor costs 30,000

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