Avery 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, Avery budgets 2022 assembly support costs to be $8,500,000 and 2022 direct labour-hours to be 170,000. 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 $7,682,000, while the actual direct labour-hours were 167,000. 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.) = Budgeted indirect cost rate Data - X Required Laguna Model Mission Model 1. Compute the (a) budgeted and (b) actual indirect cost rates. Why do they differ? Construction Period February-June 2022 May-October 2022 2. What is the job cost of the Laguna Model and the Mission Model using (a) normal Direct materials EA 107,020 EA 126,922 costing and (b) actual costing? 3. Why might Avery Construction prefer normal costing over actual costing? Direct labour EA 34,021 EA 40,990 Direct labour-hours 820 99 Print Done Print Done