AND IN PROBLEM

4-19

\ 4-19 JOB COSTING; ACTUAL, NORMAL, AND VARIATION OF\ NORMAL COSTING. 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 labourhours. Chirac & Partners employs 10 professionals who are involved in their auditing services.\ Budgeted and actual amounts for 2018 are as follows:\ Budget for 2018\ Professional labour compensation

$960,000

\ Audit support department costs\

$720,000

\ Professional labour-hours billed to clients 16,000 hours\ Actual results for 2018\ Audit support department costs\

$744,000

\ Professional labour-hours billed to clients\ 15,500 hours\ Actual professional labour cost rate\

$58

per hour