Dillon Company's manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 8.900 direct labor- hours will be required next year. The variable overhead rate is $5.50 per direct labor hour. The company's budgeted fixed manufacturing overhead is $133,500 per year, which includes depreciation of $30,260. All other fixed manufacturing overhead costs represent current cash flows. The predetermined overhead rate for next year should be: $20,50 $5,50