AC2720 Wk2 Exercise 1

# AC2720 Wk2 Exercise 1 - Actual costing normal Problem 1...

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Problem 1 Actual Part 1: Budgeted and actual overhead rates Part 2 Costs of Job 626 under actual and normal costing follow: Actual Costing Direct materials \$ 40,000.00 Direct manufacturing labor costs \$ 30,000.00 Manufacturing overhead costs \$ 57,000.00 Total manufacturing costs of Job 626 \$127,000.00 Part 3 Over and under allocated overhead cost rate overhead ing manufactur ctual A rate overhead ing manufactur ctual A

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Part 4 Why might managers at Destin Products prefer to use normal co stin managers prefer normal costings as in the case of actual costing, the co completed. However, managers require to calculate the cost at v ey need to know manufacturing cost to price the jobs, evaluate the success required for vario

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l costing, normal costing, accounting for manufacturing overhead = = \$ 2,700,000.00 = 1.8 \$ 1,500,000.00 = = \$ 2,755,000.00 = 1.9 \$ 1,450,000.00 Normal Costing \$ 40,000.00 \$ 30,000.00 \$ 54,000.00 \$ 124,000.00 costs labor ing manufactur
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