= Homework: Ch 4 Homework Question 4, E4-33 (simil... Part 1 of 17 HW Score: 0%, 0 of 28 points O Points: 0 of 5 5 O Save Kirac & Partners, a Quebec based public accounting partnership, specializes in audit services. Its job-cosling 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. Kirac & 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 requirements. Requirement 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. Begin by identifying the formula to calculate the actual indirect-cost rate. - X Actual indirect-cost rate Data table - X X Requirements Budget for 2020 Professional labor compensation $ 990,000 774,000 $ Audit support department costs Professional labor-hours billed to clients 18.000 hours 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 Kirac & Partners use? Explain. 3. Kirac's 2020 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. S 735,000 Actual results for 2020 Audit support department costs Professional labor-hours billed to clients Actual professional labor cost rate 17,500 hours $58 por hour Print Done Print Done Help me solve this Etext pages Get more help Clear all Check