A local accounting firm employs 24 full-time professionals. The budgeted annual compensation per employee is $49,500. The average chargeable time is 400 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis.

Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $780,000, and the firm expects to have 90 clients during the coming year.

What is the budgeted indirect-cost rate per hour? (Do not round intermediary calculations and round the final calculation to the nearest cent.)

Select one:

a. $6.57 per hour

b. $81.25 per hour

c. $21.67 per hour

d. $33.00 per hour