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.…
General Accounting
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Keaton & Associates is a law firm specializing in labor relations and employee-related work. It employs 20 professionals (2 partners and 18 associates) who work directly with its clients. The average budgeted total compensation per professional for 2017 is $115,000. Each professional is budgeted to have 1,250 billable hours to clients in 2017. All professionals work for clients to their maximum 1,250 billable hours available. All professional labor costs are included in a single direct-cost category and are traced to jobs on a per-hour basis. All costs of Keaton & Associates other than professional labor costs are included in a single indirect-cost pool (legal support) and are allocated to jobs using professional labor-hours as the allocation base. The budgeted level of indirect costs in 2017 is $2,000,000. Read the requirements1. Requirement 1. Identify the components of the overview diagram of Keaton's job-costing system. A } B ↓…
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E
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