8,400,000 200,000 42 These rates differ because both the cost and hour amounts i

Question

8,400,000 200,000 42 These rates differ because both the cost and hour amounts in the two calculations are different Requirement 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b (a) Identify the formula to calculate the indirect costs under normal costing and then calculate the indirect costs for ea Budgeted indirect cost rateActual direct labor hours Normal costing) Laguna Mission Indirect cost 38,800 40,000 · 40 per DLHX 40 per DLH x 970 1,000 $ Now calculate the total costs using normal costing for each model. Laguna model Mission Normal costing model 42 42 1000 42,000 970 Actual cost Direct costs Fixed costs Indirect costs Variable costs 40740$2.000 any number in the input flelds and then click Check Answer.

Explanation / Answer

Normal costing; Laguna Mission Direct Material cost 106550 127450 Direct labour cost 36250 41130 Indirect cost 38800 40000 Total cost 181600 208580

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