Tutorial Exercise 3.8 Corporate Consulting Services operates a flexible budgeting system. The following information was obtained to produce the draft budget for the next budget period: The average charge-out rate of the company's consultants is expected to be $100 per hour. However, this rate will increase by 10% if the company's consultancy work exceeds 18,000 consultancy hours since the company will have to employ free-lance consultants to undertake additional work. Travel and subsistence expenses are expected to average $10 per chargeable consulting hour. The average annual salary of the 12 consultants employed by the company is $60,000 per annum. The consultants, who are employed on annual fixed contracts, provide a maximum of 1,500 hours per annum. Free-lance consultants are paid $55 per hour