Clayton Solutions designs Web pages for clients in the education sector. The company's job$-$costing system has a single direct cost category $($Web$-$designing labor$)$ and a single indirect cost pool composed of all overhead costs. Overhead costs are allocated to individual jobs based on direct labor$-$hours. The company employs six Web designers. Budgeted and actual information regarding Clayton Solutions follows:

Budget for $2020$:

Direct labor costs $$280,000$

Direct labor$-$ hours $10,000$

Overhead costs $$180,000$

Actual results for $2020$:

Direct labor costs $$260,000$

Direct labor$-$hours $10,000$

Overhead costs $$200,000$

$1.$ Compute the direct$-$cost rate and the indirect$-$cost rate per Web$-$designing labor$-$hour for $2020$ under $($a$)$ actual costing, $($b$)$ normal costing, and $($c$)$ the variation from normal costing that uses budgeted rates for direct costs.

$2.$ Which method would you suggest Clayton Solutions use? Explain.

$3.$ Clayton Solutions' Web design for Greenville Day School was budgeted to take

$95$ direct labor$-$hours. The actual time spent on the project was

$80$ hours. Compute the cost of the Greenville Day School job using $($a$)$ actual costing, $($b$)$ normal costing, and $($c$)$ the variation from normal costing that uses budgeted rates for direct costs.