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 $592,500 during the year and applies overhead based on annual salary costs. Judy's annual salary is $260,000, and she is expected to bill 2,500 hours during the year. Steve's annual salary is $135,000, and he is expected to bill 2,000 hours during the year.

Required:

1. Calculate the predetermined overhead rate.
2. 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.

Complete this question by entering your answers in the tabs below. 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. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Complete this question by entering your answers in the tabs below. 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. Note: Do not round intermediate calculations. Round your answers to 2 decimal places