LO 3, 4 1a. Direct cost rate $58 per professional labour Ir Indirect cost rate, 348 per professional labour-hour 4-19 Job costing; actual, normal, and variation of normal costing. Chirac & Partners is a Quebec-based public accounting partnership specializing in audit services. Its job-costing system has a single direct cost category (professional labour) 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 labour-hours. Chirac & Partners employs 10 professionals who are involved in their auditing services. ASSIGNMENT MATERIAL Budgeted and actual amounts for 2018 are as follows: Budget for 2018 Professional labour compensation Audit support department costs Professional labour-hours billed to clients Actual results for 2018 Audit support department costs Professional labour-hours billed to clients Actual professional labour cost rate $ 960,000 S 720,000 16,000 hours $ 744,000 15,500 hours 58 per hour Required 1. Identify the direct cost rate per professional labour-hour and the indirect cost rate per professional labour-hour for 2018 under (al actual costing. (b) normal casting, and (c) variation of normal costing that uses budgeted rates for direct costs. 2. The audit of Pierre & Company done in 2018 was budgeted to take 110 hours of professional labour time. The actual professional labour time on the audit was 120 hours. Compute the 2018 job cost using (a) actual costing. (b) normal costing, and (c) variation of normal costing that uses budgeted rates for direct costs. Explain any differences in the job cost. LO 3, 4 1a. Direct cost rate $58 per professional labour Ir Indirect cost rate, 348 per professional labour-hour 4-19 Job costing; actual, normal, and variation of normal costing. Chirac & Partners is a Quebec-based public accounting partnership specializing in audit services. Its job-costing system has a single direct cost category (professional labour) 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 labour-hours. Chirac & Partners employs 10 professionals who are involved in their auditing services. ASSIGNMENT MATERIAL Budgeted and actual amounts for 2018 are as follows: Budget for 2018 Professional labour compensation Audit support department costs Professional labour-hours billed to clients Actual results for 2018 Audit support department costs Professional labour-hours billed to clients Actual professional labour cost rate $ 960,000 S 720,000 16,000 hours $ 744,000 15,500 hours 58 per hour Required 1. Identify the direct cost rate per professional labour-hour and the indirect cost rate per professional labour-hour for 2018 under (al actual costing. (b) normal casting, and (c) variation of normal costing that uses budgeted rates for direct costs. 2. The audit of Pierre & Company done in 2018 was budgeted to take 110 hours of professional labour time. The actual professional labour time on the audit was 120 hours. Compute the 2018 job cost using (a) actual costing. (b) normal costing, and (c) variation of normal costing that uses budgeted rates for direct costs. Explain any differences in the job cost
