Job order costing, consulting McDonald Consulting computes the cost of each consulting engagement by adding a portion of firm-wide support costs to the labor cost of the consultants on the engagement. The support costs are assigned to each consulting engagement using a cost driver rate based on consultant labor costs. McDonald Consulting's support costs are $5 million per year, and total con¬ sultant labor cost is estimated at $2.5 million per year.

(a) What is McDonald Consulting's support cost driver rate?

(b) If the consultant labor cost on an engagement is $20,000, what cost will McDonald Consulting compute as the total cost of the consulting engage¬ ment?