Indigo Group is a consulting firm. In addition to the three partners, the firm employs nine consultants who work

directly with clients. The average budgeted compensation for these twelve professionals is $95,000. Each

professional is budgeted at 1,600 billable hours per year. All professional labor costs are included in a single direct

cost pool and are traced to jobs on a per-hour basis.

All non-prafessional labor casts are included in a single overhead cost pool and are allocated to jobs using

professional labor hours as the allocation base. Budgeted overhead costs total $600,000. During the period, the

firm worked on the following jobs:

(a) The Smith account: Consultants booked 100 hours

(b) The Davis account: Consultants booked 175 hours.

Required:

1) Compute the budgeted direct cost rate per hour of professional labor. (Round your answer to three decimal

places.)

2) Compute the budgeted overhead cost rate per hour of professional labor.

3) Compute the cost assigned to each job.