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Q4(4-28) Job costing: actual, normal, and variation from normal costing. Chico & Partners, a Quebec-based...

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Q4(4-28) Job costing: actual, normal, and variation from normal costing. Chico & 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 contains all costs of the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor-hours. Chico & Partners employs 10 professionals to perform audit services Budgeted and actual amounts for 2011 are as follows: Chico & Partners Budget for 2011 Professional labor compensation $990,000 Audit support department costs $774,000 Professional labor-hours billed to clients 18,000 hours Actual results for 2011 Audit support department costs $735,000 Professional labor-hours billed to clients 17,500 hours Actual professional labor cost rate $59 per hour 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2011 under normal costing 2. Chico's 2011 audit of Pierre & Co. was budgeted to take 150 hours of professional labor time. Compute the budgeted cost of the Pierre & Co. audit

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