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referenced ASSIGNMENT MATERIAL nufacturing Budgeted and actual amounts for 2017 are as follows: es. Its job- ) and one 2017). The | 2 Home Insert

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referenced ASSIGNMENT MATERIAL nufacturing Budgeted and actual amounts for 2017 are as follows: es. Its job- ) and one 2017). The | 2 Home Insert Page Layout Formulas Data Cheney & Partners Budget for 2017 Professional labor compensation $960,000 Audit support department costs 720,000 Professional labor-hours billed to clients 16,000 hours $ 18 3 9 10 5 7 Actual results for 2017 8 Audit support department costs 9 Professional labor-hours billed to clients 10 Actual professional labor cost rate $744,000 15,500 hours $ 53 per hour om - Rog 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 recommend Cheney & Partners use? Explain. 3. Cheney's 2017 audit of Pierre & Co. was budgeted to take 170 hours of professional labor time. The actual professional labor time spent on the audit was 185 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. I VU MUMISITEU YUUUS. 4. What is the ending balance in the Work-in-Process Control account? 4-33 Job costing; actual, normal, and variation from normal costing. Cheney & Partners, a Quebec based public accounting partnership, 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 con- tains all costs of the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor hours. Cheney & Partners employs 10 professionals to perform audit services

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