Amesbury 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-hours is the allocation base for assembly support costs. In December 2013, Amesbury budgets 2014 assembly-support costs to be ZMW8 300000 and 2014 direct labour hours to be 166000 . At the end of 2014, Amesbury is comparing the costs of two jobs that were started and completed in 2014: Direct materials and direct labour are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labour-hours are worked. The 2014 actual assembly-support costs were K6 520000 , and the actual direct labour-hours were 163000 . A. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? [4 Marks] B. What are the job costs of the Lusaka Project and the Copper belt Project using (a) normal costing and (b) actual costing? [12 Marks] C. Why is it important for Amesbury Construction to understand the costs associated with individual projects? [4 Marks] Amesbury 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-hours is the allocation base for assembly support costs. In December 2013, Amesbury budgets 2014 assembly-support costs to be ZMW8 300000 and 2014 direct labour hours to be 166000 . At the end of 2014, Amesbury is comparing the costs of two jobs that were started and completed in 2014: Direct materials and direct labour are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labour-hours are worked. The 2014 actual assembly-support costs were K6 520000 , and the actual direct labour-hours were 163000 . A. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? [4 Marks] B. What are the job costs of the Lusaka Project and the Copper belt Project using (a) normal costing and (b) actual costing? [12 Marks] C. Why is it important for Amesbury Construction to understand the costs associated with individual projects? [4 Marks]