Acre Construction assembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 2016, Acre budgets 2017 assembly-support costs to be $8,300,000 and 2017 direct labor-hours to be 166,000. At the end of 2017, Acre is comparing the costs of several jobs that were started and completed in 2017. (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? Identify the formula to calculate the budgeted indirect cost rate and then calculate the rate. Budgeted indirect cost rate Requirements 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing? 3. Why might Acre Construction prefer normal costing over actual costing? Print Done Data table C Laguna Model Mission Model Construction period Direct materials costs. $ Direct labor costs $ Direct labor-hours Feb-June 2017 106,350 $ 36,325 $ 950 May-Oct 2017 127,970 41,320 1,030 Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked. The 2017 actual assembly-support costs were $6,888,000, and the actual direct labor-hours were 164,000. Print Done Question 2, E4-24 (similar to) Part 1 of 4 HW Score: 0%, 0 of 165 points O Points: 0 of 10 = Homework: chapter 4 HW Thomas Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017: (Click the icon to view the data.) Read the requirements Requirement 1. Calculate the budgeted manufacturing overhead rate. Determine the formula, then calculate the budgeted manufacturing overhead rate. Budgeted manufacturing overhead rate Requirements 1. Calculate the budgeted manufacturing overhead rate. 2. Calculate the manufacturing overhead allocated during 2017. 3. Calculate the amount of under- or overallocated manufacturing overhead. Why do Thomas's managers need to calculate this amount? Print Done C... Data table Budgeted manufacturing overhead costs Budgeted machine-hours $ 4,400,000 176,000 Actual manufacturing overhead costs Actual machine-hours $ 4,260,000 171,000 - X Print Done Save