A company employs two consultants. Judy specializes in tax consulting and Steve specializes in management consulting. The company expects to incur total overhead costs of $$693,600$ during the year and applies overhead based on annual salary costs. Judy's annual salary is $$270,000,$ and she is expected to bill $2,000$ hours during the year. Steve's annual salary is $$138,000,$ and he is expected to bill $1,800$ hours during the year.

Required:

Calculate the predetermined overhead rate.

Assuming that the hourly billing rate should be set to cover the total cost of services plus a $20\%$ markup, compute the hourly billing rates for Judy and Steve.