Ashton 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, Ashton budgets 2017 assembly-support costs to be $8,280,000 and 2017 direct labor-hours to be 230,000. At the end of 2017, Ashton 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 1 Laguna Model Mission Model 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 costs Budgeted direct labor hours Budgeted indirect co $ 8,280,000 230,000 S 36 per Identify the formula to calculate the actual indirect cost rate and then calculate the rate. Actual indirect costs Actual direct labor hours Actual indirect cost $ 6,888.000 1 164,000 ES Construction period Feb-June 2017 May-Oct 2017 127,450 S Direct materials costs Direct labor costs Direct labor-hours S 106,350 $ 36,580 S 900 41,750 1 1,050 42 per These rates differ because both the cost and hour amounts in the two calculations are different 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. Requirement 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) (a) Identify the formula to calculate the indirect costs under normal costing and then calculate the indirect costs for eaq (Normal costing) = Indirect cost Print Done (b) Identify the formula to calculate the indirect costs under actual costing and then calculate the indirect costs for each model. Indirect costs (Actual costing) Laguna Mission per DLH per DLH Now calculate the total costs using actual costing for each model. Laguna Model Mission Model Actual Costing Total costs Requirement 3. Why might Attleboro Construction prefer normal costing over actual costing? Attleboro Construction might prefer normal costing over actual costing because normal costing Attleboro can use this information to