Al Sherif Contracting Company assembles residential houses

Subject:AccountingPrice:4.87 Bought7

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Al Sherif Contracting Company assembles residential houses . It uses a job costir mark up for pricing the job. Direct labor hour is the allocation base for indirect ca December 2019 Al Sherif budgets 2020 indirect costs to be $10,000,000 and 2 direct labor hours to be 175,000 . At the end of 2020 , Al Sherif was comparing of several jobs that were started and completed during 2020 : Al Jurf Pearl RAK Appex Construction Period 1/2 - 18/7 / 2 4/3 - 8/10 / 2020 Direct Material cost $ 480,000 $520,000 Direct Labor Cost 68,00072,000 Direct labor Hours 1,020 1,220 The 2020 actual indirect costs were $12,614,000 and the actual direct labor were 190,000.

Required:

(A) Compute the budgeted and actual indirect cost rates and provide an explar the variations (if any)

(B) What are the job costs of Al Jurf Pearl and RAK Appex under? i. normal costing, and ii. Actual costing.

(C) What is the suitable pricing of both jobs under actual costing, provided that mark - up was 18 %?