A local accounting firm employs 28 full-time professionals. The budgeted annual compensation per employee is $41,000. The average chargeable time is 430 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 $787,000, and the firm expects to have 95 clients during the coming year.

What is the budgeted indirect-cost rate per hour?

A.

$6.86 per hour

B.

$28.10 per hour

C.

$65.37 per hour

D.

$19.27 per hour