Chirko & 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. Chirko & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2017 are as follows: Budget for 2017 Professional labor compensation - $990,000 Audit support department costs - $774,000 Professional labor hours billed to clients - 18,000 hours Actual results for 2017 Audit support department costs - $735,000 Professional labor hours billed to clients - 17,500 hours Actual professional labor cost rate - $59 per hour Chirko's 2017 audit of Pierre & Co. was budgeted to take 140 hours of professional labor time. The actual professional labor time spent on the audit was 160 hours. Compute the cost of the Pierre & Co. audit using actual costing.

Chirko & 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. Chirko & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2017 are as follows: Budget for 2017 Professional labor compensation - $990,000 Audit support department costs - $774,000 Professional labor hours billed to clients - 18,000 hours Actual results for 2017 Audit support department costs - $735,000 Professional labor hours billed to clients - 17,500 hours Actual professional labor cost rate - $59 per hour Chirko's 2017 audit of Pierre & Co. was budgeted to take 140 hours of professional labor time. The actual professional labor time spent on the audit was 160 hours. Compute the cost of the Pierre & Co. audit using actual costing.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 6E: Varney Corporation, a manufacturer of electronics and communications systems, allocates Computing...

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Chirko & 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. Chirko & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2017 are as follows: Budget for 2017 Professional labor compensation $975,000 Audit support department costs $675,000 Professional labor-hours billed to clients 15,000 hours Actual results for 2017 Audit support department costs $775,000 Professional labor-hours billed to clients 15,500 hours Actual professional labor cost rate $54 per hour 1. Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2017…
& 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. Chirko & Partners employs 10 professionals to perform audit services. Budgeted and actual amounts for 2017 are as follows: Chirko & Partners Budget for 2017 Professional labor compensation $975,000 Audit support department costs $675,000 Professional labor-hours billed to clients 15,000 hours Actual results for 2017 Audit support department costs $775,000 Professional labor-hours billed to clients 15,500 hours Actual professional labor cost rate $54 per hour Compute the direct-cost rate and the indirect-cost rate per professional labor-hour for 2017 under each method.…
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. Budget for 2021 Professional labour compensation Chirac & Partners 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)…
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X Associates undertake to prepare income tax returns for individuals for a fee. They use the weighted average method and actual costs for the financial reporting purposes. However, for internal reporting, they use a standard costs system. The standards, based on equivalent performance, have been established as follows : Labour per return 5 hrs @ $ 40 per hour Overhead per return 5 hrs @ $ 20 per hour For March 2018 performance, budgeted overhead is $ 98,000 for standard labour hours allowed. The following additional information pertains to the months of March 2018: Return-in-process (25% complete) 200 No. Return started in March March 1 March 31 825 Nos. Mar-31 Return-in-process (80% complete) 125 Nos. Cost Data: Mar-01 Return-in-process labour |- Overheads March 1 to 31 Labour : 4,000 hours |Overheads $12000 $5000 $1,78,000 |$90000 You are required to compute: (a) For each element, equivalent units of performance and the actual cost per equivalent unit. (b) Actual cost of…
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Can you please solve this general accounting question?
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