gni For E4-23 (algo) Question Help * Avery 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, Avery budgets 2017 assembly-support costs to be $8,900,000 and 2017 direct labor-hours to be 178,000. At the end of 2017, Avery is comparing the costs of several jobs that were started and completed in 2017. (Click the icon to view the data.) Read the equirement Requirement 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? Identify the formula to calculate the budgeted indirect cost rate and then calculate the rate. Choose from any drop-down list and then click Check Answer. 11 parts remaining Budgeted indirect cost rate Clear All Check Answer ruction as cost pool pport cost iData Table with hug dicant - X materia ecember mparing arted and d e icon to v uirements Laguna Model Mission Model Construction period Feb-June 2017 1. Comp May-Oct 2017 Direct materials costs $ 106,550 $ 127,550 rmula to Direct labor costs $ 36,250 $ 41,860 Direct labor-hours 980 1,030 ost rate any drop ng Direct 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 $8,316,000, and the actual direct labor-hours were 154,000. Print Done Ch sembles residential houses. It uses a job-costing system with two direct-cost categories (direct materials a (assembly support). Direct labor-hours is the allocation base for assembly support costs. In December 201 ts to com view Requirements - X he bute 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? cald 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 Avery Construction prefer normal costing over actual costing