Actual costs and normal costs. American River Company uses a predetermined rate for applying overhead to production using normal costing. The rates lor Year I follow:

variable, 200 percent of direct labor dollars; fixed. 300 percent of direct labor dollars. Actual overhead costs incurred follow: variable, $20,000; fixed. $26,000. Actual direct materials costs were $5,000, and actual direct labor costs were $9,000.

American River produced one job in Year I.

a. Calculate actual costs of the job.

b. Calculate normal costs of the job using predetermined overhead rates