Bilkins Financial Advisors Provides Accounting and Finance Assistance to Customers

Bilkins Financial Advisors provides accounting and finance assistance to customers in the retail business. Bilkins has 4 professionals on staff, plus an office with 6 clerical staff. Total compensation, including benefits, for the professional staff runs about $576,000 per year, and normal billable hours are 8,000 hours per year. Professional staff keeps detailed timesheets organized by the client number. Office and administrative costs total $754,000 a year. What is the cost allocation rate that Bilkins will use for direct labor i.e. the cost of the professional staff?

A) $75 per hour
B) $36 per hour
C) $72 per hour
D) $76 per hour