Khadka Manufacturing manufactures work benches for local and domestic markets. Materials and labour used in the manufacturing process are directly allocated to different jobs as the company uses a job costing system.Costs incurred in the manufacturing support department are indirect in nature and allocated to different jobs on the basis of direct labor-hours. Khadka estimates 2020 manufacturing-support costs to be $1,700,000 and 2020 direct labor- hours to be 50,000.

At the end of 2020, Khadka collects the cost-related data of different jobs that were started and completed in 2020 for comparison. They are as follows:

Iron benches Wooden benches

Production period Jan-May 2020 May-Sept 2020

Direct material costs $39,145 $47,325

Direct labour costs $12,723 $16,376

Direct labour-hours 420 480

Direct materials and direct labour are paid for on a contractual basis.The costs of each are known when direct materials are used or when direct labour hours are worked.The 2020 actual manufacturing-support costs were $1,785,000 and the actual direct labour-hours were 51,000.

A) Compute the budgeted indirect-cost rate and the actual indirect-cost rate.

B)What are the job costs of the Iron benches and the Wooden benches using normal costing and actual costing?

Job costs under Normal costing Iron benches Wooden benches Total Costs Job costs under Actual costing Iron benches Wooden benches Total Costs