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Question (1) CLO.1 10 Marks Al Shareq Construction Company assembles residential houses in the UAE. It uses a job- costing system with two direct-cost categories. (DM and DL) and indirect-cost pool (support). Direct- Labor hours are used as a base to allocate support costs. The budget support costs for the year 2021 was $8,000,000 and 2021 direct labor hours to be 160,000. At the end of 2021, the financial controller was comparing the costs of several jobs that were started and completed in 2021. American Model Arab Model DM Costs $ 106,650 $ 127,970 DL Costs $36,276 $ 41,750 DL hours 920 1,040 DM and DL are paid on a contract basis. The 2021 actual support costs were $ 7,614,000 and the actual DL Hours were 162,000. Required: A. Compute the budget and actual indirect costs rates. B. What are the job costs of the American Model using (a) normal costing and (b) actual costing? C. Which method, you may recommend to Al Share