Anderson 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, Anderson budgels 2017 assembly-support costs to be $8,100,000 and 2017 direct labor-hours to be 135,000. At the end of 2017, Anderson is comparing the costs of several jobs that were started and completed in 2017. (Click the icon to view the data.) Read the requirements Data Table 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. Laguna Model = Budgeted indirect cost rate Mission Model May Oct 2017 127,250 Construction period Direct materials costs per DLH Feb-June 2017 S 106,430 $ S S 36,740 $ 910 41,410 Identify the formula to calculate the actual indirect cost rate and then calculate the rate. Direct labor costs Direct labor-hours 1,070 / Actual indirect cost rate per DLH 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 $6,642,000, and the actual direct labor-hours were 162,000. These rates differ because Requirement 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing? (a) Identify the formula to calculate the indirect costs under normal costing and then calculate the indirect costs for each model. Print Done x = Indirect costs (Normal costing) Laguna = per DLH por DLH Mission Now calculate the total costs using normal costing for each model. Laguna Mission Laguna Model Mission Model Normal costing model model Construction period Feb-June 2017 May-Oct 2017 Direct materials costs 106,430 $ 127,250 Direct labor costs 36,740 $ 41,410 910 Total costs Direct labor-hours 1,070 (b) Identify the formula to calculate the indirect costs under actual costing and then calculate the indirect costs for each model. 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 $6,642,000, and the actual direct labor-hours were 162,000. (Actual costing) X Indirect costs Laguna per DLH = Mission per DLH Print Done Now calculate the total costs using actual costing for each model. Mission Laguna Model Actual Costing Model Total costs beri innut fi am