4-19 Job costing; actual, normal, and variation of normal costing. [Excel template] (LO 3, 4) Chirac & Partners is a Quebec-based public accounting partnership specializing in audit services. Its job-costing system has a single direct cost category (professional labour) and a single indirect cost pool (audit support, which contains all the costs in the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labour-hours. Chirac & Partners employs 10 professionals who are involved in their auditing services. Budgeted and actual amounts for the year are as follows: Budget for the year Professional labour compensation $ 1,120,000 Audit support department costs $ 800,000 Professional labour-hours billed to clients 16,000 hours $ 852,500 Professional labour-hours billed to clients 15,500 hours $68 per hour Actual results for the year Audit support department costs Actual professional labour cost rate Required 1. Identify the direct cost rate per professional labour-hour and the indirect cost rate per professional labour-hour for the year under (a) actual costing, (b) normal costing, and (c) variation of normal costing that uses budgeted rates for direct costs. 2. The audit of Pierre & Company done in the year was budgeted to take 110 hours of professional labour time. The actual professional labour time on the audit was 120 hours. Compute the job cost using (a) actual costing, (b) normal costing, and (c) variation of normal costing that uses budgeted rates for direct costs. Explain any differences in the job cost. Check Figure: 1a. Actual Indirect cost rate, $55 per professional labour- hour