Craden 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 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 2017 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 rate 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) (b) Normal (c) Variation of Actual costing costing normal costing Direct-cost rate Indirect-cost rate Data Table Budget for 2017: Direct labor costs Direct labor-hours Overhead costs $240,000 20,000 $140,000 Actual results for 2017: Direct labor costs Direct labor-hours $200,000 20,000 $180,000 Overhead costs Print Done 0 Requirements Compute the direct-cost rate and the indirect-cost rate per Web-designing labor-hour for 2017 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 80 direct labor-hours. The actual time spent on the project was 62 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