1. Seng & Mah Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labour) and one indirect-cost pool (assembly support). Direct labour-hour is the allocation base for assembly support cost. In December 2014, Seng & Mah budgets 2015 assembly-support cost to be RM16,000,000 and direct labour-hours to be 320 000. At the end of 2015, Seng & Mah is comparing the costs of several jobs that were started and completed in 2015. Model A Model B Construction period Feb-June, 2015 June-Nov, 2015 Direct material costs RM 212,900 RM 255,208 Direct labour costs RM 72,552 RM 82,820 Direct labour-hours 1800 2020 Direct materials and direct labour are paid for on a contract basis. The cost of each are known when direct materials are used or when direct labour-hours are worked. The 2015 actual assembly support cost were RM13,776,000 and the actual direct labour-hours were 328,000. i. Compute the (a) budget indirect cost-rate and (b) actual indirect-cost rate? What do they differ? ii. What are the job costs of Model A and Model B using (a) normal costing and (b) actual costing? iii. Why might Seng & Mah Construction prefer normal costing over actual costing