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h Cracklin Solutions designs Web pages for clients in the education sector. The...

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Accounting

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Cracklin Solutions designs Web pages for clients in the education sector. The company's job-costing system has a single direct cost category (Web-designing labor) and a single indirect cost pool composed of all overhead costs. Overhead costs are allocated to individual jobs based on direct labor-hours. The company employs six Web designers. Budgeted and actual information regarding Cracklin Solutions follows: EEE (Click the icon to view the data.) Requirements 1. Compute the direct cost rate and the indirect-cost rate per Web-designing labor-hour for 2014 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. 2. Which method would you suggest Cracklin Solutions use? Explain. 3. Cracklin Solutions' Web design for Greenville Day School was budgeted to take 85 direct labor-hours. The actual time spent on the project was 70 hours. Compute the cost of the Greenville Day School job using (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct cost

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