
1.
Actual Costing:
Actual costing is a method of cost accounting that records the cost on the actual basis, means cost of labor, material and
Normal Costing:
In cost accounting, the accountant finds production cost that is based on the estimated price of input that is multiplied by the actual quantity of material and other input used by the company.
To compute: The actual and budgeted manufacturing overhead rates.
2.
To compute: The cost of job by (a) actual costing and by (b) normal costing.
3.
The under or over allocated manufacturing overhead under normal costing and explain the treatment of under or over allocated manufacturing over head under actual costing.
4.
To explain: The managers of D products prefer normal costing.

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Chapter 4 Solutions
Cost Accounting, Student Value Edition Plus MyAccountingLab with Pearson eText -- Access Card Package (15th Edition)
- Total overhead variance isarrow_forwardThe UPS Manufacturing Company has a predetermined overhead rate of $10, comprised of a variable overhead rate of $6 and a fixed rate of $4. The amount of budgeted overhead costs at normal capacity of $300,000 was divided by normal capacity of 30,000 direct labor hours, to arrive at the predetermined overhead rate of $10. Actual overhead for July was $18,600 variable and $12,500 fixed, and standard hours allowed for the product produced in July was 3,500 hours. The total overhead variance is__.arrow_forward4 POINTSarrow_forward
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