Chico & Partners, a Quebec based public accounting oartnership, 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 if 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 2017 are shown in the photo attached.

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 reccomend Chico &Partners use? Explain 3. Chiro's 2017 audit if Pierre & Co was budgeted to take 139 hours of professional labor time. The actual professional labor time spent on the audit was 140 hours. Compute the cost I'd 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.

specializes m audits using actual professio x -) and a single indirect cost pool (audit es Budgeted and actual amounts for 2 Data Table rate per professione fion from normal costing that uses bur rate Chico & Partners Budget for 2017 Professional labor compensation Audit support department costs Professional labor-hours billed to clients $1,120,000 $688,000 16,000 hours Actual results for 2017 Audit support department costs Professional labor-hours billed to clients Actual professional labor cost rate $738,000 16,400 hours $55 per hour Print Done