libbs Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of $2024,$ managing partner Jennifer Tibbs prepared the following budget for the year:

$($Click the icon to view the prepared budget.$)$

$($Click the icon to view additional information.$)$

Read the requirements.

Requirement $1.$ Compute Tibbs Realtors' $($a$)$ hourly direct labor cost rate and $($b$)$ predetermined overhead allocation rate.

Begin with $($a$)$ hourly direct labor cost rate.