19.

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $7.60 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $139,160 per month, which includes depreciation of $24,860. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

$19.60

$27.20

$23.70

$7.60