Sheridan Company provides financial consulting and has collected the following data for the next years budgeted activity for a lead consultant.

Consultants wages	$80000
Fringe benefits	$32500
Related overhead	$27500
Supply clerks wages	$19000
Fringe benefits	$5000
Related overhead	$22000
Profit margin per hour	$20
Profit margin on materials	15%
Total estimated consulting hours	5000
Total estimated material costs	$166000

The labor rate per hour is

$46.50.

$48.00.

$28.00.

$47.50.