Marlborough Accounting is performing an audit for the Chandra Company.

Marlborough Accounting uses a cost sheet to record the cost of each audit. Only professional services (by associates, managers, and partners) and overhead are recorded on the cost sheet. The cost sheets are then compared with the bid price of the audit to determine if the audit was profitable, and to improve future bids prices. Marlborough Accounting had bid £10,000 to do the Chandra Company audit. During the month of January, the following work was performed on the Chandra Company audit: 10 hours of associate work at £30 per hour, four hours of manager work at £50 per hour, and one hour of partner time at £100 per hour. During February, the following work was performed at the same rates as in January to finish the audit: 100 hours of associate time, 50 hours of manager time, and eight hours of partner time. Overhead is allocated at £20 per professional service hour provided.

a. Make a cost sheet for the Chandra Company audit.

b. Was the Chandra Company audit profitable for Marlborough Accounting?