Cheney \& 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. Cheney \& Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2020 are as follows: (Click the icon to view the data.) Read the inuilecticusis Total job costs All three costing systems use the actual professional labor time of 125 hours. The budgeted 110 hours is not used in job costing The actual costing figure of the normal costing figure of This is because the budgeted indirect-cost rate the actual indirect-cost rate of of Budget for 2020 Professional labor compensation $990,000 Audit support department costs $774,000 Professional labor-hours billed to clients 18,000 hours Actual results for 2020 Audit support department costs $735,000 Professional labor-hours billed to clients 17,500 hours Actual professional labor cost rate $54 per hour Print Done Requirements 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2020 under (a) actual costing, (b) normal costing, and (c) the variation from normal costing that uses budgeted rates for direct costs. 2. Which job-costing system would you recommend Cheney \& Partners use? Explain. 3. Cheney's 2020 audit of Pierre \& Co. was budgeted to take 110 hours of professional labor time. The actual professional labor time spent on the audit was 125 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 budgeted rates for direct costs. Explain any differences in the job cost