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. Riley and Malory Medical Office employs 12 full-time doctors and 10 physician assistants. Direct and indirect costs are applied on a professional labor-hour basis that includes both doctor and physician assistant hours. Following is information for 2014:

Budget Actual

Indirect costs $270,000 $300,000

Annual salary of each doctor $100,000 $110,000

Annual salary of each physician assistant $ 29,000 $ 30,000

Total professional labor-hours 50,000 dlh 60,000 dlh

1. What is the actual direct-cost rate per professional labor-hour?
2. What is the actual indirect-cost rate per professional labor-hour?
3. How much should the client be billed in an actual costing system if 200 labor-hours are used?