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.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 28E: Minor Co. has a job order cost system and applies overhead based on departmental rates. Service...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,