Cheney & Partners Budget for 2017 Professional labor compensation $960,000 Audit support department costs $720,000 Professional labor-hours billed to clients 16,000 hours Actual results for 2017 Audit support department costs $744,000 Professional labor-hours billed to clients 15,500 hours Actual professional labor cost rate $53 per hour Requirements 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2017 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 2017 audit of Pierre & Co. was budgeted to take 150 hours of professional labor time. The actual professional labor time spent on the audit was 165 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.