Virginia Consultants Employs 10 Full-Time Management Consultants

Virginia Consultants employs 10 full-time management consultants.The budgeted annual compensation per employee is $75,000.The average time charged per client is 250 hours per year.The professional consultant labor costs are included in a single direct-cost category and they are allocated to jobs on a per-hour basis.
The other costs associated with the consultant firm are included in a single indirect-cost pool,allocated according to professional labor hours.The budgeted indirect costs for the year are $500,000,and the firm expects to have 50 new clients in the next year.
What is the budgeted direct-labor cost rate per hour?

A) $20 per hour.
B) $30 per hour.
C) $40 per hour.
D) $50 per hour.
E) $60 per hour.