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Anderson 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 2013, Anderson budgets 2014 assembly-support costs to be $8,000,000 and 2014 direct labor-hours to be 160,000. At the end of 2014, Anderson is comparing the costs of several jobs that were started and completed in 2014 (Click the icon to view the data.) 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. Budaeted indirect cost rate costs of several jobs that were started and completed in 2014 (Click the icon to view the data.) 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 2014 actual assembly-support costs were $7,614,000, and the actual direct labor-hours were 162,000. yumubuoyuyuru u WET W www Identify the formula to calculate the budgeted indirect cost rate and then calculate the rate Budgeted indirect cost rate i Data Table Laguna Model Mission Model Construction period Feb-June 2014 Direct materials costs $ $ 106,650 $ 36,276 $ May-Oct 2014 127,970 41,750 1,040 Direct labor costs Direct labor-hours 920 Requirements 1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? 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 Anderson Construction prefer normal costing over actual costing