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Avery Construction assembies residental houses. It uses a job-cosing system with two direct-cost categories (direct materiais and direct labor) and one indirect-cost pool (assembly support).

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Avery Construction assembies residental houses. It uses a job-cosing system with two direct-cost categories (direct materiais and direct labor) and one indirect-cost pool (assembly support). Dir labor-hours is the alocasion base for assembly support costs. In December 2016, Avery budpets 2017 assombly-support costs to be $8,280,000 and 2017 direct labor-hours to be 230,000 . At the end of 2017 . Avery is comparing the costs of several jobs that were started and completed in 2017. (Click the icon to view the data.) Read the requitements Requirement 1. Compule the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they difer? Identify the formula to calculate the budgeted indirect cost rale and then calculate the rate. 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. 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 Avery Construction prefer normal costing over actual costing

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