Quick Smart Books are a firm of accountants. They have estimated their direct costs: Partner Salaries 200 per hour Staff Salaries100 per hour Computer Time 80 per operating hour Total overhead costs are estimated at600,000. Overhead costs are recovered from clients using a base of 30,000 direct labour hours per annum. During March, they undertook work for their client, Peter Parker. The work took 20 hours of partner time, 40 hours of staff time and 20 hours of computer operating time. Work is charged to clients at total cost plus 40%. The Overhead Recovery Rate is: Select one:
a. $20.00 per hour
b. $40.00 per hour
c. $400.00 per hour
d. $380.00 per hour