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Indirect-costs Actual indirect-cost rate X Actual qty of cost-allocation bases Identify the formulas to calculate the direct and indirect-costs under normal costing. (b) Normal Costing Direct-costs = = Actual direct-cost rate Budgeted indirect-cost rate X X Actual qty of direct-cost inputs Actual qty of cost-allocation bases Indirect-costs Identify the formulas to calculate the direct and indirect-costs under the variation of normal costing. (c) Variation of Normal Costing. Direct-costs X Budgeted direct-cost rate Budgeted indirect-cost rate Actual qty of direct-cost inputs Actual qty of cost-allocation bases Indirect-costs Compute the cost of the Pierre & Co. audit under each of the three methods. (b) (c) Variation of Normal Actual Costing Cost of Pierre audit: Costing Normal Costing Direct-costs Indirect-costs $ Total job costs All three costing systems use The actual costing figure of $ actual indirect-cost rate of $ 3 10.335 $ 8.775 19.110 $ W Chico & Partners Budget for 2017 Professional labor compensation Audit support department costs Professional labor-hours billed to clients Actual results for 2017 Audit support department costs Professional labor-hours billed to clients Actual professional labor cost rate 10.335 $ 13.650 Print Done 1 8.385 8,385 18,720 $ 22.035 the actual professional labor time of 195 hours. The budgeted 180 hours is not used in job costing the normal costing figure of $ This is because the the budgeted indirect-cost rate of $ $1,120,000 $688.000 16,000 hours $738,000 16.400 hours $53 per hour Indirect-costs Actual indirect-cost rate X Actual qty of cost-allocation bases Identify the formulas to calculate the direct and indirect-costs under normal costing. (b) Normal Costing Direct-costs = = Actual direct-cost rate Budgeted indirect-cost rate X X Actual qty of direct-cost inputs Actual qty of cost-allocation bases Indirect-costs Identify the formulas to calculate the direct and indirect-costs under the variation of normal costing. (c) Variation of Normal Costing. Direct-costs X Budgeted direct-cost rate Budgeted indirect-cost rate Actual qty of direct-cost inputs Actual qty of cost-allocation bases Indirect-costs Compute the cost of the Pierre & Co. audit under each of the three methods. (b) (c) Variation of Normal Actual Costing Cost of Pierre audit: Costing Normal Costing Direct-costs Indirect-costs $ Total job costs All three costing systems use The actual costing figure of $ actual indirect-cost rate of $ 3 10.335 $ 8.775 19.110 $ W Chico & Partners Budget for 2017 Professional labor compensation Audit support department costs Professional labor-hours billed to clients Actual results for 2017 Audit support department costs Professional labor-hours billed to clients Actual professional labor cost rate 10.335 $ 13.650 Print Done 1 8.385 8,385 18,720 $ 22.035 the actual professional labor time of 195 hours. The budgeted 180 hours is not used in job costing the normal costing figure of $ This is because the the budgeted indirect-cost rate of $ $1,120,000 $688.000 16,000 hours $738,000 16.400 hours $53 per hour