Exercise 1 (Job costing; actual and normal costing) Chips and Partners is a Quebec-based public accounting partnership specializing 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 the costs in the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor-hours. Chips and Partners employs ten professionals who are involved in their auditing services. Budget and actual amount for 20X1 are as follows: Budget for 20X1 Professional labor compensation Audit support Department costs P960,000 P720,000 Professional labor-hours billed to clients 16,000 hours Actual Results for 20X1 Audit Support Department costs Professional labor-hours billed to clients Actual professional labor cost rate is P58 per hour P744,000 15,500 hours Required I. Identify the direct-cost rate per professional labor-hour and the indirect- cost per professional labor-hour for 20X1 under (a) actual costing, (b) normal costing The audit of the Montreal Expos done in 20XI was budgeted to take 110 hours of professional labor time. The actual professional labor time on the audit was 120 hours. Compute the 20X1 job costing using (a) actual costing and (b) normal costing. Explain any differences. 2