4-28 Job costing; actual, normal, and variation from normal costing. Chico & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct cost category (professional labor) and a single indirect-cost pool (audit support, which contains all costs of the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor-hours. Chico & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2011 are as follows: SLODA Home Insert Page Layout Formulas Data A Chico & Partners 2 Budget for 2011 and stelle 3 Professional labor compensational $990,000 tu no 4 Audit support department costs $774,000 5 Professional labor-hours billed to clients 18,000 hours How s L61 7 Actual results for 2011 8 Audit support department costs $735,000 DOS 9 Professional labor-hours billed to clients bor 17,500 10 Actual professional labor cost rate $ 59 per hour in tota 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2011 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. 2. Chico's 2011 audit of Pierre & Co. was budgeted to take 150 hours of professional labor time. The actual professional labor time spent on the audit was 160 hours. Compute the cost of the Pierre & Co. audit using (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses bud- - geted rates for direct costs. Explain any differences in the job cost. Braden Brothers, Inc. Budget for 2010 Architect labor cost Office support costs Architect labor-hours billed to clients Actual results for 2010 Office support costs Architect labor-hours billed to clients Actual architect labor cost rate $2,880,000 $1,728,000 32,000 hours $1,729,500 34,590 hours $ 92 per hour 1. Compute the direct-cost rate and the indirect-cost rate per architectural labor-hour for 2010 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. 2. Braden Brother's architectural sketches for Champ Tower in Houston was budgeted to take 275 hours of architectural labor time. The actual architectural labor time spent on the job was 250 hours Compute the cost of the Champ Tower sketches using (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs