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 manufacturing labor costs. Dakota provides the following information: Budget for 2017 Actual Results for 2017 Direct material costs $2,250,000 $2,150,000 Direct manufacturing labor costs 1,700,000 1,650,000 Manufacturing overhead costs 3,060,000 3,217,500 Q. Why might managers at Dakota Products prefer to use normal costing?
Actual costing, normal costing, accounting for manufacturing
Budget for 2017 Actual Results for 2017
Direct material costs $2,250,000 $2,150,000 Direct manufacturing labor costs 1,700,000 1,650,000 Manufacturing overhead costs 3,060,000 3,217,500
Q. Why might managers at Dakota Products prefer to use normal costing?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
