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ge Anderson Construction assembles residential houses. It uses job-costing system with two direct-cost categories...

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ge Anderson Construction assembles residential houses. It uses job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). Direct labor-hou is the allocation base for assembly support costs. In December 2016, Anderson budgets 2017 assembly-support costs to be $8,600,000 and 2017 direct labor-hours to be 215,000. At the end of 2017 Anderson is comparing the costs of several jobs that were started and completed in 2017 b Data Table Why do they Laguna Model Mission Model Construction period Direct materials costs Direct labor costs Direct labor-hours Feb-June 2017 May-Oct 2017 106,430 S 36.276 S 920 Budgeted indirect cost rate 127,325 41.130 1,00040 per DLH Direct materials and direct labor are paid for on a contract basis. The costs of each are known when direct materials are used or when direct labor-hours are worked The 2017 actual assembly-support costs were $5,635,000, and the actual direct labor-hours were 161,000 xt question Print | Done

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