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.

 QUESTION28. Kyogle’s budgeted direct labor cost rate per hour is: