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 they normally have about 8,000 billable hours per year. Professional staff keep detailed time sheets organized by the client number. Office and administrative costs total $754,000 a year. Bilkins allocates professional time and office and administrative costs to clients monthly, using allocation rates based on billable hours. What is the cost allocation rate that Bilkins will use for office and administrative costs?

A) $94.25 per hour
B) $36.00 per hour
C) $72.00 per hour
D) $74.13 per hour