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 2011 actual assembly-support costs were $6520000 and the actual direct labor-hours were 163000.1. Compute the (a) budgeted indirect-cost rate and (b) actual indirect-cost rate. Why do they differ? Required 2. What are the job costs of the Laguna Model and the Mission Model using (a) normal costing and (b) actual costing?3. Why might Amesbury Construction prefer normal costing over actualcosting?