Craden Solutions designs Web pages for clients in the education secton 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 Craden Solutions follows: Click the icon to view the data.) Read the requirements Requirement 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. Begin by identifying the formula to calculate the actual indirect-cost rate. Actual indirect cost rato Identify the formula to calculate the budgeted indirect cost rate Budgeted indirect-cost rate Identify the formula to calculate the budgeted direct-cost rate. Budgeted direct-cost rate Compute the direct-cost rate and the indirect-cost rate per labor hour under: (a) Actual (b) Normal costing (c) Variation of costing normal costing Direct-cost rate Indirect cost rate Requirement 2. Which method would you suggest Craden Solutions use? Explain Craden Solutions should choose a job-costing system based on the Information available to them. If Craden Solutions knows as the jobs are being done, I would recommend Craden Solutions use by calculating a y to cost jobs Vonables Cradon Solutions to use the (Web-designing labor) and a single indirect cost pool composed of all overhead costs. Overhead costs are allocated to indi- labor-hours. The company employs six Web designers. Budgeted and actual information regarding Craden Solutions follow Click the icon to view the data.) Read the requirements Requirement 1. Compute the direct-cost rate and the indirect-cost rate per Web-designing labor-hour for 2020 under (a) ac costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. Begin by identifying the formula to calculate the actual indirect-cost rate, Actual indirect cost rate Ide indirect-cost rate 11 Actual direct-costs Budgeted indirect-cost rate Id direct-cost rate. Actual direct labor-hours Budgeted direct-cost rate Actual indirect-costs CC cost rate per labor hour under: Budgeted direct-costs (b) (c) Budgeted direct labor-hours Normal Variation of costing normal costing Di Budgeted indirect-costs Indirect-cost rate Requirement 2. Which method would you suggest Craden Solutions use? Explain. Craden Solutions should choose a job-costing system based on the information available to them. If Craden Se dnnn Linnuild mom dan contiene ce Craden Solutions designs Web pages for clients in the education secton The company's job-costing system has a single direct cost category Direct-cost rate Indirect-cost rate Requirement 2. Which method would you suggest Craden Solutions use? Explain. Craden Solutions should choose a job-costing system based on the information available to them. If Craden Solutions knows as the jobs are being done, I would recommend Craden Solutions use by calculating a to cost jobs enables Craden Solutions to use the to estimate the cost of a job as soon as the job is completed. 1 Craden Solutions does not know as the jobs are being completed, I would recommend that Craden Solutions use the This would allow Craden Solutions to estimate costs on a more-timely basis. eted to take 110 direct labor-hours. The actual time spent on the ctual costing, (b) normal costing, and (c) the variation from normal variation of actual conting that calculates a budgeted direct cost rato. Jal costing variation of actual costing that calculates a budgeted indirect cost rate variation of normal costing that calculatos a budgeted direct cost rate. variation of normal costing that calculatos a budgeted indirect cost rato. (b) Normal costing Direct costs Indirect costs Identify the formulas to calculate the direct and indirect costs under the variation of normal costing Direct-cost rate Indirect cost rate Requirement 2. Which method would you suggest Craden Solutions use? Explain. Craden Solutions should choose a job-costing system based on the information available to them. If Craden Solutions know as the jobs are being done, I would recommend Crai by calculating a to cost jobs. enables direct cost job as soon as the job is completed. the 1 Craden Solutions does not know as the jobs are be indirect cost recommend that Craden Solutions use the WOWIU W Craden Solutions to estimate costs on a more-tim Requirement 3. Craden Solutions Web design for Greenville Day School was budgeted to take 110 direct labor-hours. The actual time spent project was 92 hours. Compute the cost of the Greenville Day School job using (a) actual costing, (b) normal costing, and (c) the variation from Direct-cost rate Indirect-cost rate Requirement 2. Which method would you suggest Craden Solutions Craden Solutions should choose a job-costing system based on the as the jobs are being done, I would recommend Crad to cost jobs. enables d to direct costs not know as the jobs are bein indirect costs Requirement 3. Craden Solutions' Web design for Greenville Day Scho project was 92 hours. Compute the cost of the Greenville Day School jol costing that uses budgeted rates for direct costs. . tions use? Explain. the information available to them. If Craden Solutions knows Craden Solutions use by calculating a ables Craden Solutions to estimate the cos actual costing over normal costing le are being completed, in This would a normal costing over actual costing more-tim Day School was budgeted to take 110 direct labor-hours. The actual time spent School job using (a) actual costing, (b) normal costing, and (c) the variation fron direct-costs under actual costing. s under normal costing. X ats under the variation of normal costing. Indir -COST Requirement 2. Which method would you suggest Craden Solutions use? E Craden Solutions should choose a job-costing system based on the as the jobs are being done, I would recommend Craden Sole V to cost jobs. 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X X s to calculate the direct and indirect-costs under the variation of normal costing. mal costing: en Solutions designs web pages for ie UUN SEUL HUO ect-cost rate irect-cost rate quirement 2. Which method would you suggest Craden Solutions use? Explain. den Solutions should choose a job-costing system based on the information available to them. If Craden Solutions know as the jobs are being done, I would recommend Craden Solutions use by calculating to cost jobs. enables Craden Solutions to use the to estimate the cost of a job as soon as the job is completed. budgeted direct cost rate calculated at the beginning of the year Pleted, I would recommend that Craden Solutions use the 3 would allow Craden Solutions to estimate costs on a more-ti budgeted to take 110 direct labor-hours. The actual tyne spe 9 (a) actual costing, (b) normal costing, and (c) the variation fr budgeted direct cost rate calculated at the end of the year budgeted indirect cost rate calculated at the beginning of the year ar actual costing budgeted indirect cost rate calculated at the end of the year Indirect costs Identify the formulas to calculate the direct and indirect-costs under normal costing Requirement 3. Craden Solutions' Web design for Greenville Day School was budgeted to take 110 direct labor-hours. The actual time spent on the project was 92 hours. Compute the cost of the Greenville Day School job using (a) actual costing, (b) normal costing, and (c) the variation from norma costing that uses budgeted rates for direct costs, Begin by identifying the fomulas to calculate the direct and indirect-costs under actual costing (a) Actual costing: Direct-costs Indirect costs Identify the formulas to calculate the direct and indirect-costs under normal costing. (b) Normal costing Direct-costs Indirect.costs Identify the formulas to calculate the direct and indirect-costs under the variation of normal costing () Variation of normal conting: Direct.costs Indirect costs What would the cost of this job be under each of the costing methods in requirement 1? (a) (b) (c) Actual Normal Variation of Cost of Craden Solutions costing costing normal costing Direct costs Indirect costs Totaljob costs (a) Actual costing: Direct-costs X Indirect-costs Identify the formulas te der normal costing Actual direct-cost rate (b) Normal costing: Direct-costs Indirect-costs [ Actual indirect-cost rate Budgeted direct-cost rate Identify the formulas to der the variation of norma Budgeted indirect-cost rate (c) Variation of normal Direct-costs Indirect-costs X What would the cost of this job be under each of the costing methods in requirement 1? (a) (b) Normal (c) Actual Cost of Craden Solutions: Variation of costing costing Direct-costs normal costin blutions' Web design for Greenville Day School was budgeted to take 110 direct labor-hours. The actual time spent upute the cost of the Greenville Day School job using (a) actual costing, (b) normal costing, and (c) the variation from rates for direct costs. rmulas to calculate the direct and indirect-costs under actual costing. alculate the direct and indirect-costs ur Actual qty of cost-allocation bases Actual qty of direct-cost inputs Budgeted qty of cost-allocation bases calculate the direct and indirect-costs ur Budgeted qty of direct-cost inputs posting: this job be under each of the costing methods in requirement (b) (c) (a) Actual Normal Variation of utions: costing costing normal costing Data Table stimate cos Budget for 2020: S' Web me cost for dire hours. The a ling, and (c) Direct labor costs 200,000 to calc Direct labor-hours 20,000 200,000 Overhead costs $ Actual results for 2020: 280,000 Direct labor costs Direct labor-hours Overhead costs 20,000 the dire 120,000 Print Done e the dire The icon to view the data.) equirements. In a mc Requirements al time variati ment 3. Craden was 92 hours. Co hat uses budget identifying the al costing: costs Et-costs 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 Craden Solutions use? Explain. 3. Craden Solutions' Web design for Greenville Day School was budgeted to take 110 direct labor-hours. The actual time spent on the project was 92 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. Print Done y the formulas to Ormal costing: t-costs ect-costs lify the formulas to wariation of normal costing: act-costs