Atkinson Construction assembles residential homes. It uses a job$-$costing system with two direct cost categories $($direct materials and direct labour$)$ and one indirect cost pool $($assembly support$).$ The allocation base for assembly support costs is direct labour$-$hours. In December $2021,$ Atkinson budgets $2022$ assembly support costs to be $$7,200,000$ and $2022$ direct labour$-$hours to be $160,000.$ At the end of $2022,$ Anderson is comparing the costs of several jobs that were started and completed in $2022.$ Information for a couple of jobs follows:

$($Click the icon to view the data.$)$

Direct materials and direct labour are paid for on a contract basis. The costs of each are known when direct materials are used or direct labour$-$hours are worked. The $2022$ actual assembly support costs were $$6,192,000,$ while the actual direct labour$-$hours were $172,000.$

Required

Requirement $1.$ Compute the $($a$)$ budgeted and $($b$)$ actual indirect cost rates. Why do they differ?

Identify the formula to calculate the budgeted indirect cost rate and then calculate the rate. $($Round your final answer to the nearest whole dollar.$)$

$$

Identify the formula to calculate the actual indirect cost rate and then calculate the rate. $($Round your final answer to the nearest whole dollar.$)$

$1$

$1$ Actual indirect cost rate

Why do the budgeted and the actual indirect cost rates differ?

These rates differ because $$ in the two calculations are different.

Requirement $2.$ What is the job cost of the Laguna Model and the Mission Model using $($a$)$ normal costing

Identify the formula to calculate the indirect costs under normal costing and then calculate the indirect cos

$($Normal costing$)x$

Laguna

Mission

$x$

$$

$\backslash$table$[[\backslash$table$[[$Construction Period$],[$Direct materials$]],\backslash$table$[[$Laguna Model$],[$February$-$June $2022]],\backslash$table$[[$Mission Model$],[$May$-$October $2022]]],[$$$,105,120,$$$,126,586],[$Direct labour,$$,34,074,$$$,39,920],[$Direct labour$-$hours,,$850,,990]]$