What is the operating income? (6 points) 4. Pletts Home Builders, located in Spanish Lookout, constructs "Mennonite houses" for local residents within Belize. It uses a job-costing system with two direct-cost categories (direct materials and direct labour) and one indirect-cost pool (assembly support). Pletts uses direct labour-hours as the allocation basis for its assembly support costs. In 2019 , Pletts budgeted its assembly support costs to be $3,562,000, and direct labour-hours to be 356,200 hours. At the end of 2019, Pletts compared the cost of different jobs that were started and completed. The two direct costs are paid for on a contract basis) therefore, the costs of each are known when direct materials are used and when direct labour hours are worked. In 2019, the actual assembly-support costs were $3,445,000, and the actual direct labour-hours were 265,000 hours. Required: (i) Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. (2 points) (ii) What are the job costs of the Two-Room Model and Three-Room Model using (a) normal costing and (b) actual costing? (16 points) (iii) Why might Pletts Home Builders prefer normal costing over actual costing? (2 points) 5. Mam Belize produces two main types of snack: potato chips and popcorn. Data related to the two products are presented below