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.
