A company employees two consultants who each have a different specialization. Caitlin specializes in industrial commercial construction and Zachary specializes in residential construction. The company expects to incur total overhead costs of $$573,540$ during the year and applies overhead based on annual salary costs. Caitlin's annual salary is $$168,300,$ and she is expected to bill $2,400$ hours during the year. Zachary's annual salary is $$92,400,$ and he is expected to bill $2,200$ hours during the year.

Required:

a$.$ Calculate the predetermined overhead rate.

b$.$ Assuming that the hourly billing rate should be set to cover the total cost of services plus a $25\%$ markup, compute the hourly billing rates for Caitlin and Zachary.

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Required A

Calculate the predetermined overhead rate.

Predetermined overhead rate

$\%$