200,000 42 per DLH 8,400,000 These rates difler because both the cost and hour a

Question

200,000 42 per DLH 8,400,000 These rates difler 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) actual costing? la) ldentily the formuia to calculate the indirect costs under normal costing and then calculate the indirect costs for each model Normal costing) Indirect costs Achal drectst rate Actual indirect cost rate Budgeted direct cost rate Budgeted indirect cost rate Choose from any drop-down list and then click Check Answer

Explanation / Answer

Formula for indirect cost = Budgeted indirect cost rate * Budgeted direct labour hours

Budgeted indirect cost rate = 8,400,000 / 200,000 = $42 per direct labour hour

Indirect cost for Laguna model = 42 * 970 = $40,740

Indirect cost for Mission model = 42 * 1,000 = $42,000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.