Question 2 CONST Ltd is a construction company that assembles residential houses. It uses a job costing system with two categories comprised of direct costs and one indirect cost pool. Direct labour hours is the allocation base for the indirect costs. For the year 2019, the company budgets $2,000,000 for indirect costs and 25,000 for direct labour hours. Budgeted direct material costs and direct labour costs are $2,450,000 and $1,275,000 respectively. Actual indirect costs were $1,968,000. Actual direct labour hours were 24,000 hours and direct labour costs were $1,200,000. The accountant gathered the following actual information on two of the jobs started and completed in 2019: Direct material Direct labour hours Job 1 Job 2 $134,000 $202,000 1,800 2,350 Required: 1. What is the total cost of Job 1 and Job 2 under normal costing? [16 marks] 2. Was overhead under-allocated or overallocated? (Quantify the amount, if any, of the amount of the over-allocated or under-allocated overhead) [6 marks] 3. $7,300 of indirect material was used on Job 2 and was included in overhead costs. Prepare the journal entry(s) for the use of material (both direct and indirect) on Job 2. [3 marks] 4. Why might CONST Ltd prefer normal costing over actual costing? [5 marks].