AssignmentChirac & Partners is a Quebec based public accounting partnership specialising in audit services. Its job-costing system has a single direct cost catergory (professional labour) and a single indirect cost pool (auditsupport, which contain all the costs in the Audit Support Department). Audit support costs are allocated toindividual jobs using actual professional labour-hours, Chirac & Partners employee ten professional whoare involved in their auditing services.Budget for 2021Professional labour compensationChirac & PartnersAudit support department costsProfessional labour hours billed to clientsActual results for 2021Audit support department costsProfessional labour-hours billed to clientsActual professional labour cost rate$960,000720,00016,000$744,00015,500$58(Direct cost)(Indirect cost)hourshoursper hourRequired: Identify the direct cost rate per professional labour hour and the indirect cost rate perprofessional labour hour for 2021 under (a) actual costing. (b) normal costing.

Direct cost is the one which is allocated directly to the product and vice versa to this, indirect…

Assignment Chirac & Partners is a Quebec based public accounting partnership specialising in audit services. Its job- costing system has a single direct cost catergory (professional labour) and a single indirect cost pool (audit support, which contain all the costs in the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labour-hours, Chirac & Partners employee ten professional who are involved in their auditing services. Chirac & Partners Budget for 2021 Professional labour compensation Audit support department costs Professional labour hours billed to clients Actual results for 2021 Audit support department costs Professional labour-hours billed to clients Actual professional labour cost rate $960,000 720,000 16,000 $744,000 15,500 $58 (Direct cost) (Indirect cost) hours hours per hour Required: Identify the direct cost rate per professional labour hour and the indirect cost rate per professional labour hour for 2021 under (a) actual costing. (b) normal costing.

Assignment Chirac & Partners is a Quebec based public accounting partnership specialising in audit services. Its job- costing system has a single direct cost catergory (professional labour) and a single indirect cost pool (audit support, which contain all the costs in the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labour-hours, Chirac & Partners employee ten professional who are involved in their auditing services. Chirac & Partners Budget for 2021 Professional labour compensation Audit support department costs Professional labour hours billed to clients Actual results for 2021 Audit support department costs Professional labour-hours billed to clients Actual professional labour cost rate $960,000 720,000 16,000 $744,000 15,500 $58 (Direct cost) (Indirect cost) hours hours per hour Required: Identify the direct cost rate per professional labour hour and the indirect cost rate per professional labour hour for 2021 under (a) actual costing. (b) normal costing.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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