Managerial Accounting:

Actual costs and normal costs. Ohio River Company uses a predetermined rate for applying overhead to production using normal costing. The rates for Year 1 follow: variable, 200 percent of direct labor dollars; xed, 300 percent of direct labor dollars. Actual overhead costs incurred follow: variable, $20,000; xed, $26,000. Actual direct materials costs were $5,000, and actual direct labor costs were $9,000. Ohio River produced one job in Year 1. a. Calculate actual costs of the job. b. Calculate normal costs of the job using predetermined overhead rates.

Please show all work and explain thoroughly.