Be sure to complete the steps required in the "ACC360 QuickBooks Student Registration Instructions" document.

Using the data provided in 423 in the textbook for Atkinson Construction, prepare job cost reports for the Laguna Model and the Mission Model for 2017. In QuickBooks, jobs are called projects. Assume the following:

1. The company uses normal costing.
2. All expenses, including overhead, can be entered via summary journal entries dated at the end of the year.
3. All jobrelated costs can be entered directly into the Cost of Goods Sold account since the jobs are completed.

You will need to set up Laguna Model and Mission Model as projects prior to entering the expenses.

Prepare a Project Profitability Report for each job. Note that based on the data provided, you will be showing expenses only for each project.

4-23 Job costing, normal and actual costing. Atkinson 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, Atkinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000.At the end of 2017, Atkinson is comparing the costs of several jobs that were started and completed in 2017.Laguna ModelMission ModelConstruction periodFebJune 2017MayOct 2017Direct material costs$106,550$127,450Direct labor costs$ 36,250$ 41,130Direct labor-hours9701,000Direct 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 $8,400,000, and the actual direct labor-hours were 200,000. 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 Atkinson Construction prefer normal costing over actual costing?