A local accounting firm employs 28full-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 singledirect-cost category and are allocated to jobs on aper-hour basis.

Other costs are included in a singleindirect-cost pool, allocated according to professionallabor-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 budgetedindirect-cost rate perhour?

A.

$65.37 per hour

B.

$28.10 per hour

C.

$19.27 per hour

D.

$6.86 per hour