Cost accounting

Al Sherif Contracting Company assembles residential houses. It uses a job costing and mark up for pricing the job. Direct labor hour is the allocation base for indirect cost. In December 2019, Al Sherif budgets 2020 indirect costs to be $10,000,000 and 2020 direct labor hours to be 175,000. At the end of 2020, Al Sherif was comparing the costs of several jobs that were started and completed during 2020: Al Jurf Pearl RAK Appex Construction Period 1/2 - 18/7/2020 473-8/10/2020 Direct Material cost $480,000 $520,000 Direct Labor Cost 68,000 72,000 Direct labor Hours 1,020 1,220 The 2020 actual indirect costs were $12,614,000 and the actual direct labor hours were 190,000 Required: (A) Compute the budgeted and actual indirect cost rates and provide an explanation of the variations (if any). (B) What are the job costs of Al Jurf Pearl and RAK Appex under? i. normal costing, and ii. Actual costing. (C) What is the suitable pricing of both jobs under actual costing, provided that the mark-up was 18%