A management consultancy recovers overheads on the basis of chargeable consulting hours. Budgeted overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered by...

A management consultancy recovers overheads on the basis of chargeable consulting hours. Budgeted

overheads were $615,000 and actual consulting hours were 32,150. Overheads were under-recovered

by $35,000.

If actual overheads were $694,075, what was the budgeted overhead absorption rate per hour?