PwC, a local accounting firm, employs 25 full-time tax professionals. The budgeted annual compensation per employee is $50,000. The average chargeable time per client annually is 320 hours. Indirect costs are allocated according to professional labor-hours. Budgeted indirect costs for the year are $521,000 and the firm expects to have 80 clients during the coming year.

Required:

a) What is the budgeted indirect cost rate per hour?

b) If 8 clients leave and the workforce stays at 25 employees, what is PwC's new indirect cost rate per hour?