Kyogle Secretarial Services Inc., employs 20 full‐time secretaries.

The budgeted annual compensation per employee is $40,500. The average

chargeable time is 500 hours per client annually. All secretarial labor costs are included in a single direct‐cost

category and are allocated to jobs on a per‐hour basis.

Other costs are included in a single indirect‐cost pool, allocated

according to secretarial labor‐hours. Budgeted indirect costs for the year are

$787,500, and the firm expects to have 90 clients during the coming year.

QUESTION30. If ten clients

are lost and the workforce stays at 20 employees, then the direct labor cost

rate per hour is: