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x Do Homework -Edwin Reyes x C Secure https://www.mathxl.com/St aspo?homeworkid=468295276&question;!da7- ACC 2311/HE22 Cost Acct 1 (Spring 18) Edwin Reyes 1 3/11/18 3:40 AM Homework: Assignment 5 Chpt 4 Job Costing Score: 0 of 20 pts E4-23 (book/static) Save 9of9(6 complete) HW Score: 25%, 25 of 100 pts aestion Help * Atinson Construction assembles residential hases. I uses a costing system with two direct-cost categores (direct matonas and creer labor, nd one indirect-cost pool (assembly support) Direct labor-hours is the allocation base for assembly support costs. In December 2016, Askinson budgets 2017 assembly-support costs to be $8,800,000 and 2017 direct labor-hours to be 220,000. At the end of 2017, Akinson is comparing the costs of several jobs that were started and completed in 2017 EB(Click the loon to view the data.) Read the regirements Requirement 1. Compute the (a) budgoted indirect-coot rate and (b) actual indirect-cost rate Why do they difter? dentily the formula to calculate the budgeted indirect ost rate and then calculate the rate. Budgeted indirect cost rate Choose from any drop-down list and then click Check Answer Check Answer Clear All

Explanation / Answer

The difference in the budgeted and actual indirect cost rate is due to the the varying direct labor hours as well as the difference in the actual costs incurred from those budgeted.

1(a) Budgeted indirect costs / Budgeted direct labor hours = Budgeted indirect cost rate $8800000 / 220000 = $40 1(b) Actual indirect costs / Actual direct labor hours = Actual indirect cost rate $8400000 / 200000 = $42

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