= Homework: Ch4... Question 4, Exercise 4-2... HW Score: 21.7%, 1.09 of 5 points Part 1 of 12 Save Points: 0 of 1 Ashton Construction assembles residential homes it uses a job-costing system with two direct cost categories (direct materials and direct labour) and one indirect cost pool assembly support) The allocation base for assembly support costs is direct labour-hours in December 2021, Ashton budgets 2022 assembly support costs to be $5,980,000 and 2022 direct labour hours to be 130,000 At the end of 2022. Anderson is comparing the costs of several jobs that were started and completed in 2022 Information for a couple of jobs follows (Click the icon to view the data) Direct materials and direct labour are paid for on a contract basis. The costs of each are known when direct materials are used or direct labour hours are worked The 2022 actual assembly support costs were $7,335,000 while the actual direct labour-hours were 163,000 Required Requirement 1. Compute the (a) budgeted and (b) actual indirect cost rates. Why do they differ? Identify the formula to calculate the budgeted indirect cost rate and then calculate the rate (Round your final answer to the nearest whole dollar) Budgeted indirect cost rate Data Construction Period $ Direct materials Direct labour Laguna Model February-June 2022 $ 106 620 $ 35,628 840 Mission Model May-October 2022 $ 127 323 39,540 970 Direct labour-hours Required 1. Compute the (a) budgeted and (b) actual indirect cost rates. Why do they differ? 2. What is the job cost of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing? 3. Why might Ashton Construction prefer normal costing over actual costing